Mizuho Securities Cuts Price Target After Tableau Software (DATA) Reports First Ever License Sales Miss
Mizuho Securities maintained a Neutral rating on Tableau Software (NYSE: DATA), and cut the price target to $55.00 (from $80.00), following the company's 4Q earnings report. Tableau reported total revenues slightly above estimates. However, license sales of $133mm missed consensus' $135mm for the first time ever. The miss likely indicates a negative impact of an intensifying competitive environment. DATA updated its full-year revenue outlook to $830-850mm, from $845-865mm, coming in below consensus of $872mm. Guidance implies deceleration of license growth to high single digits in 1Q16.
Analyst Abhey Lamba commented, "Tableau reported 4Q15 total revenues slightly above estimates, however, license sales missed consensus for the first time ever likely indicating the negative impact of an intensifying competitive environment. Management cut its fullyear 2016 outlook and reiterated its intention to continue investing in growth which will likely compress margins meaningfully. We believe it will be difficult for the stock to work as both growth deceleration and margin downside weigh on the multiple. Maintaining Neutral rating and adjusting PT to $55 from $80."
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Shares of Tableau Software closed at $81.75 yesterday.