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KeyBanc Upgrades Alteryx, Says Software Company Has Left Headline Risk Behind

KeyBanc Upgrades Alteryx, Says Software Company Has Left Headline Risk Behind

A little over two months after downgrading Alteryx Inc (NYSE: AYX), KeyBanc Capital Markets said the time is now right to be constructive on the shares of the data analytics software company.

The Analyst

Analyst Brent Bracelin upgraded shares of Alteryx from Sector Weight to Overweight and set a price target of $40.

The Thesis

Alteryx shares have languished by about 19 percent since KeyBanc's March 12 downgrade, primarily due to the impending formal release of Tableau Software Inc Class A (NYSE: DATA)'s Prep product, Bracelin said in a Sunday note. (See the analyst's track record here.) 

The software has since been released. 

"With this headline risk now behind us, strong 1Q18 results and a risk-reward that has turned favorable, we are upgrading AYX," Bracelin said.

The analyst recommended that growth investors add to their positions and take advantage of any potential weakness emerging from the volatility associated with Tableau Prep. 

Alteryx is likely to quadruple revenues within five years even if year-over-year subscription growth slows from 50 percent in Q1 to 35 percent, the analyst said. 

KeyBanc views Alteryx' data science platform as the most "underappreciated lever," as it is estimated to disrupt the $3-billion SaaS revenue stream longer term. The sell-side firm expects the company's Inspire conference in June to showcase its competitive moat.

The Price Action

Alteryx shares have added about 22 percent year-to-date. 

The stock was surging 5.9 percent to $32.67 at the time of publication Monday. 

Related Links:

KeyBanc Downgrades Tableau Software To Reflect 'More Balanced' Risk-Reward

Data Analytics Firm Splunk Has Discounted Valuation, Takeout Appeal, Argus Says In Upgrade

Latest Ratings for AYX

Nov 2019Initiates Coverage OnNeutral
Nov 2019MaintainsNeutral
Nov 2019MaintainsBuy

View More Analyst Ratings for AYX
View the Latest Analyst Ratings

Posted-In: Brent Bracelin KeyBanc Capital MarketsAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga


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