Cloudera (CLDR) PT Lowered to $14 at Nomura/Instinet

Nomura/Instinet analyst Christopher Eberle lowered the price target on Cloudera (NYSE: CLDR) to $14.00 (from $20.00) while maintaining a Buy rating ahead of the company's 1Q earnings report. CLDR reports 1Q20 earnings next Wednesday, June 5th, after market close. Investors seem to be expecting further cuts to FY guide. Eberle sees the potential for an initial positive reaction to reiterating FY guide of $835-855mn as short-lived as investors move their focus to management execution.

The stock has significantly underperformed broader Software as noise related to the merger integration, with customers taking a wait-and-see approach, led to lower expectations than originally thought. The potential for more “noise” to continue over the coming quarters is likely as management and the Street get a better understanding of the moving pieces
which will likely lead to further downward revisions in the near term.

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