Alteryx Will Gain From Democratization Of Data and Self-Service Analytics, Analyst Says While Bumping Up Price Target By 18%

  • Needham analyst Mike Cikos reiterated a Buy and bumped the price target on Alteryx, Inc AYX to $80 from $68.
  • Alteryx stood out as one of the few companies in his coverage that sustained its growth through 2Q22, unaffected by the weakening economy. 
  • He recently spoke with the company to understand the drivers for its 2Q strength and the different elements investors are considering for CY23 ARR and Revenue growth.
  • When considering CY23, he believes Alteryx’s NRR of ~120% over the last six quarters presents a baseline growth rate. Investors can layer in additional vectors such as improved execution and go-to-market, more robust Cloud capabilities, a building and more frequent Renewal cycle, and ELA tailwinds.
  • He believes the self-service tools provided by Alteryx provide a pivotal function in the Big Data software stack, bridging the gap between end-users, analytics, and the underlying infrastructure. 
  • Alteryx is levered to the growing democratization of data, and self-service analytics, which he believes represents a significant, un-penetrated TAM. 
  • As data proliferates, enterprises are storing and analyzing more significant amounts to drive their decision-making processes which should provide a secular demand driver to Alteryx.
  • Price Action: AYX shares traded lower by 4.04% at $66.56 on the last check Tuesday.
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