Wedbush Starts Slack Technologies Inc. (WORK) at Underperform on Microsoft Competition

(Updated - November 8, 2019 9:27 AM EST)

(updated to add analyst comments)

Wedbush analyst Daniel Ives initiates coverage on Slack Technologies Inc. (NYSE: WORK) with a Underperform rating and a price target of $14.00.

Ives commented, "The Slack solution is impressive and represents a strong growth opportunity, however we believe penetrating this next phase of enterprises will be incrementally more difficult as the Microsoft/Teams value proposition presents a major competitive hurdle going forward in sales cycles. To this point, our checks in the field indicate Slack will have significant difficulty further penetrating the enterprise given the significant competitive offering from Microsoft's TEAM product that could slow growth going forward quicker than the Street is anticipating. While Slack has done a commendable job getting to this juncture we believe the next step of growth will be a major uphill battle as the Street continues to overestimate growth in 2020 and beyond which speaks to our more negative thesis on this name heading into the next 12 to 18 months and thus speaks to our more bearish view at current levels."

For an analyst ratings summary and ratings history on Slack Technologies Inc. click here. For more ratings news on Slack Technologies Inc. click here.

Shares of Slack Technologies Inc. closed at $20.14 yesterday.

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