On the back of disappointing earnings and outlook, Wall Street analysts reduced their price targets on data visualization software maker Tableau Software Inc (NYSE:DATA) and professional networking giant LinkedIn Corp (NYSE:LNKD). Below are the changes along with current ratings and comments.
Tableau Software Inc
Tableau Software shares are crashing on Friday morning, down 39% after the company delivered softer results and guidance than Street expected. In reaction, Jefferies analyst John Difucci reiterated a Hold rating on the stock, while slashing the price target to $65 (from $92), which implies a downside of 20.5% from current levels.
Difucci noted, “Expectations finally became too great for DATA. 4Q results that were in line with consensus numbers were obviously not in line with expectations, as DATA traded off sharply after hours and accelerated to the downside when disappointing guidance was given. Softening IT spend and competition were given as reasons, but we hear of a decent spending environment in the field. We continue to wonder if free Qlik Sense desktop is having an effect.”
According to TipRanks.com, a site that tracks and ranks analysts on their predictions, analyst John Difucci has a yearly average return of -0.7% and a 47% success rate. Difucci is ranked #2259 out of 3621 analysts.
As of this writing, out of the 22 analysts polled by TipRanks, 14 rate Tableau Software stock a Buy, 7 rate the stock a Hold and 1 recommends a Sell. With a return potential of 35%, the stock’s consensus target price stands at $110.32.
LinkedIn shares are falling nearly 30% in pre-market trading after the company posted a solid fourth-quarter results, but the outlook for ’16 implies material deceleration in growth.
Reacting was top analyst Youssef Squali from Cantor, which reduced his price target to $210 (from $300), while reiterating a Buy rating on shares of LinkedIn.
Squali commented, “A disappointing outlook, which calls for Y/Y revenue growth to decelerate to 20-22% from 35% in FY:15 (and forecast of +30%), will cast a shadow over LNKD, even as the company reported better-than-expected 4Q:15 results. Some of this slowdown is self-inflicted, with management deciding to terminate underperforming products and launch promising ones, and some of it is driven by macro and FX headwinds, but none of it is driven by competition or by the platform becoming less relevant to its users, in our view. We believe that LinkedIn is one of the most useful professional networking tools with a user base that’s likely to continue to grow by tens of millions a year, and one of the stickiest hiring and marketing platforms, providing differentiated and cost-effective solutions.”
According to TipRanks.com, analyst Youssef Squali has a yearly average return of 13% and a 56.8% success rate. Squali has a -5.9% average return when recommending LNKD, and is ranked #30 out of 3621 analysts.