There’s a lot to be optimistic about in the Technology sector as 3 analysts just weighed in on Tableau (NYSE: DATA), Q2 Holdings (NYSE: QTWO) and ServiceNow (NYSE: NOW) with bullish sentiments.
Tableau (NYSE: DATA)
In a report issued on May 3, Marshall Senk from Rosenblatt Securities reiterated a Buy rating on Tableau (NYSE: DATA), with a price target of $100. The company’s shares closed on Friday at $91, close to its 52-week high of $97.09.
Senk noted:
“We are maintaining our topline estimate for the second quarter but reducing our EPS estimate to reflect both the continuing drive toward subscription and in- creased spend in sales and product development as the company looks to ex- pand internationally, cover the enterprise more effectively and continue the rap- id pace of innovation, highlighted by the releases of both 10.5 in January (which includes the Hyper in memory engine and the more recent rollout of Da- ta Prep. Increasing our assumption on the ratable mix to 64% for Q2, also pro- vides a headwind to the reported topline number and impacts the bottom line. Marshall Senk Director of Research 212 607-3153 msenk@rblt.com Company Summary: Tableau Software, Inc. offers analytics soft- ware. The Company helps its customers analyze, visualize, and share information, allowing them to share data on their blogs and websites. Tableau Software provides a means for data and product analysis, as well as marketing optimization.”
According to TipRanks.com, Senk is a 5-star analyst with an average return of 27.8% and a 84.1% success rate. Senk covers the Technology sector, focusing on stocks such as Proofpoint Inc, Carbonite Inc, and Synacor Inc.
Currently, the analyst consensus on Tableau is Moderate Buy and the average price target is $99.17, representing an 9.0% upside.
In a report issued on April 20, Barclays also maintained a Buy rating on the stock with a $102 price target.
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Q2 Holdings (NYSE: QTWO)
BTIG analyst Mark Palmer reiterated a Buy rating on Q2 Holdings (NYSE: QTWO) on May 3 and set a price target of $55. The company’s shares closed on Friday at $54.90, close to its 52-week high of $55.25.
Palmer wrote:
“With shares of Q2 Holdings (QTWO) up more than 35% year-to-date, the company clearly needed to post a strong 1Q18 print in terms of revenue and adjusted EBITDA as well as a strong 2Q18 and full-year 2018 forecast and perhaps a few Tier 1 bank signings in order to sustain its share price momentum. The 1Q18 report that QTWO released yesterday after the market close delivered on all counts.”
According to TipRanks.com, Palmer is a 5-star analyst with an average return of 8.1% and a 57.6% success rate. Palmer covers the Financial sector, focusing on stocks such as Santander Consumer USA, Assured Guaranty Ltd, and Synchrony Financial.
Currently, the analyst consensus on Q2 Holdings is Strong Buy and the average price target is $52.25, representing a -4.8% downside.
In a report issued on April 23, RBC Capital also reiterated a Buy rating on the stock with a $54 price target.
ServiceNow (NYSE: NOW)
In a report issued on May 4, Brad Zelnick from Credit Suisse maintained a Buy rating on ServiceNow (NYSE: NOW), with a price target of $180. The company’s shares closed on Friday at $171.22, close to its 52-week high of $176.56.
Zelnick commented:
“We expect to come away with greater appreciation of the market opportunity and ability to penetrate it. As we highlighted in our note, NOW is CRM 7 Years Ago, we believe NOW can exceed its $4bn revenue target by 2020 even if they penetrate newer markets half as quickly as they did ITSM (and they are far more substantive today). We believe N/T margin concerns will be trumped by long-term TAM substantiation, which is central to any long-term investment thesis. We remain Outperform. Share price performance N O W.N S& P 5 0 0 IN D EX Ju l- 1 7 O ct – 1 7 Jan – 1 8 A p r – 1 8 9 0 1 1 0 1 3 0 1 5 0 1 7 0 1 9 0 On 03-May-2018 the S&P 500 INDEX closed at 2629.73 Daily May04, 2017 – May03, 2018, 05/04/17 = US$96.02 Quarterly EPS Q1 Q2 Q3 Q4 2017A 0.31 0.22 0.39 0.43 2018E 0.56 0.41 0.60 0.64 2019E 0.69 0.70 0.88 0.93 Financial and valuation metrics Year 12/16A 12/17A 12/18E 12/19E NON-GAAP EPS (CS adj., ) 1.00 1.35 2.22 3.21 Prev.”
According to TipRanks.com, Zelnick is a 4-star analyst with an average return of 11.8% and a 65.7% success rate. Zelnick covers the Technology sector, focusing on stocks such as Symantec Corp, Check Point, and Oracle Corp.
Currently, the analyst consensus on ServiceNow is Strong Buy and the average price target is $183, representing a 6.9% upside.
In a report issued on April 19, Mizuho Securities also maintained a Buy rating on the stock with a $190 price target.
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