Instructure (INST) Q3 Results a 'Short-Term Blip' - Oppenheimer

November 1, 2016 9:29 AM EDT
Get Alerts INST Hot Sheet
Price: $20.10 +0.75%

Rating Summary:
    6 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 18 | New: 19
Trade INST Now!
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.

Oppenheimer analyst Brian Schwartz reiterated an Outperform rating and $27 price target on Instructure, Inc. (NYSE: INST) following mixed results, saying they are a short-term blip.

Schwartz commented, "Instructure reported mixed 3Q results that show better than expected cash flow generation and margin improvements, but below-consensus revenue results and revenue guidance. The revenue shortfall is mostly from revenue-recognition timing issues (elongated new starts, more back-end loaded renewals quarter), though management is likely moderating the investments pace too. While the top-line trend is a clear disappointment, 3Q results still show many positive business trends that we think point to a strong trajectory for the Ed-Tech story (40%+ growth rates for TTM subscription billings, deferred revenue, revenue). Bottom Line: 3Q results/guidance mark a subtle but noticeable change from management that has typically guided growth well above consensus to moderate SG&A investments for reaching positive cash flows sooner, and are likely a short-term blip in INST’s journey as a public company."

For an analyst ratings summary and ratings history on Instructure, Inc. click here. For more ratings news on Instructure, Inc. click here.

Shares of Instructure, Inc. closed at $25.45 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View

Add Your Comment