UPDATE: Drexel Hamilton Cuts Tableau Software (DATA) to Hold Following Q3 Results and Guidance
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(Updated - November 2, 2016 8:47 AM EDT)
Drexel Hamilton downgraded Tableau Software (NYSE: DATA) from Buy to Hold. Analyst Brian J. White expressed disappointment given its Q3 revenue shortfall and outlook.
"Tableau's quarterly stumbles now appear more symptomatic of a company that has lost its competitive edge in a sea of larger IT/cloud vendors that offer a broad array of solutions with more attractive price points. As such, we are downgrading Tableau to HOLD from BUY and reducing our estimates," said White.
"Given Tableau's after market reaction and our reduced estimates, Tableau is trading at an EV/revenue of approximately 3.0x our CY:17 projection and we believe the company would be better off under the umbrella of large IT or cloud vendor," continued the analyst.
Whire added, "Overall, we found the tone of the call to be downbeat with the combination of macro weakness, the headwinds of a higher mix of ratable sales, execution issues and the more competitive market hanging over the story. Tableau began to stumble in the summer of 2015 but was quickly able to get back on track the following quarter. However, the company has been in a constant battle each quarter this year, leaving us with concerns around the evolving competitive landscape that makes Tableau less special than it once was."
Shares of Tableau Software closed at $49.51 yesterday.
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