Analysts have been eager to weigh in on the Technology sector with new ratings on Shutterstock (NYSE: SSTK), Hortonworks (NASDAQ: HDP) and ServiceNow (NYSE: NOW).
Shutterstock (NYSE: SSTK)
In a report released today, Youssef Squali from SunTrust Robinson reiterated a Hold rating on Shutterstock (NYSE: SSTK), with a price target of $47. The company’s shares opened today at $45.43.
Squali wrote:
“We maintain our HOLD rating as SSTK continues to make progress in positioning itself as a single-stop platform for creative content, which is helping drive healthy growth across Ecommerce and Enterprise. However, this growth is coming at a higher investment level (in S&M, product), with any material margin leverage likely still on the come. Valuation and Risks. SSTK currently trades at ~2x on our 2018 estimates. Our $47 PT is based on a five-year DCF which assumes a ~9% revenue CAGR and terminal EBITDA margin of ~26%. Downside risks include intense competition, economic slowdown and operational mishaps. Upside risks include faster than expected penetration of the addressable market or margin expansion exceeding Street estimates.”
According to TipRanks.com, Squali is a top 100 analyst with an average return of 20.6% and a 71.6% success rate. Squali covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, Trade Desk Inc, and Alibaba Group.
Shutterstock has an analyst consensus of Moderate Sell, with a price target consensus of $44.
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Hortonworks (NASDAQ: HDP)
Mizuho Securities analyst Abhey Lamba maintained a Hold rating on Hortonworks (NASDAQ: HDP) today and set a price target of $23. The company’s shares opened today at $18.93.
Lamba noted:
“We think lack of profitability is a big concern for investors and could weigh on the stock if the market becomes difficult. Although HDP completed a secondary offering, a tougher spending environment could weigh on cash profitability. Additionally, the technology is still in the early days and needs to mature for broader adoption. Lastly, execution challenges and demand conditions could impact the stock materially. Hortonworks, Inc.”
According to TipRanks.com, Lamba is a 5-star analyst with an average return of 14.5% and a 72.9% success rate. Lamba covers the Technology sector, focusing on stocks such as CommVault Systems, Microstrategy Inc, and Ultimate Software.
Currently, the analyst consensus on Hortonworks is Moderate Buy and the average price target is $23.71, representing a 25.3% upside.
In a report issued on May 4, Monness also maintained a Hold rating on the stock.
ServiceNow (NYSE: NOW)
In a report released today, Richard Davis from Canaccord Genuity maintained a Buy rating on ServiceNow (NYSE: NOW), with a price target of $190. The company’s shares opened today at $176.03, close to its 52-week high of $176.89.
According to TipRanks.com, Davis is a top 25 analyst with an average return of 30.6% and a 78.3% success rate. Davis covers the Technology sector, focusing on stocks such as Altair Engineering Inc, Upland Software, and Microsoft Corp.
Currently, the analyst consensus on ServiceNow is Strong Buy and the average price target is $184.87, representing a 5.0% upside.
In a report issued on April 23, Piper Jaffray also reiterated a Buy rating on the stock with a $185 price target.
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