Summit Redstone Re-Starts Tableau Software (DATA) at Hold

Summit Redstone relaunches coverage on Tableau Software (NYSE: DATA) with a Hold rating and a price target of $53.00.

Analyst Srini Nandury commented, "We are relaunching coverage of Tableau Software with a HOLD rating and a $53 PT. While Tableau has the best visualization software tool in the industry, “good enough” alternatives are catching on, precluding the company from notching up easy wins. We believe the competition is going to intensify further making it harder for stellar revenue growth a thing of the past. Based upon on our conversations with industry insiders, Tableau is seen as a limited application rather than a broad platform which many enterprise users come to expect. While Tableau is working to enhance the data preparation and data governance aspects of its product, it will take a while for the company to roll out features users expect. In the near-term, Tableau growth will continue to be sluggish as many of the low-hanging fruit have already been picked and the upsells within the install base will be harder to come by. The company needs to train its sales force to pursue doggedly the large deals which were won easily before. In addition, Tableau’s products are considered expensive by many customers and the company would need to address that in the near-term. In short, the company is in a no-win situation, where the products are considered expensive with limited enterprise features. While F2Q16 might be ok and perhaps even beat the estimates, we would be cautious on the longer term. Therefore, we remain neutral for now, but our bias is geared towards the short side."

For an analyst ratings summary and ratings history on Tableau Software click here. For more ratings news on Tableau Software click here.

Shares of Tableau Software closed at $53.63 yesterday.

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