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Analysts Cut Tableau Software’s Price Target

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Tableau provides weak forecast for 1Q16 as well

Tableau Software (DATA) expects its revenues in 1Q16 to be in the range of $160–$165 million, with a net loss of between $0.08 and $0.12 per share. In comparison, analysts estimate EPS (earnings of share) of $0.06 and revenues of $179.5 million for the company.

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Analysts revise Tableau’s price target

After Tableau reduced its financial outlook for 1Q16 and 2016, a number of analysts lowered their price targets on the company. Wunderlich Securities cut its price target drastically from $130 to $75. Baird has an “outperform” rating on Tableau, but it has lowered its target price from $100 to $80. Barclay’s (BCS) has lowered its price target from $110 to $67 and has an “overweight” rating on the stock.

Goldman Sachs (GS) has lowered its price target from $99 to $61, whereas Germany’s (EWG) Deutsche Bank (DB) has a “buy” rating on Tableau and has revised its price target from $100 to $65.

Of 32 analysts covering Tableau, 20 have “buy” recommendations, one has a “sell” recommendation, and 11 have “hold” recommendations on the stock. Analysts’ stock price target for the company is $75.6, with a median target estimate of $75. This means that Tableau is trading at a discount of 81.5% with respect to its median analyst price target.

A day before its 4Q15 and 2015 results, Tableau’s median analyst price target was $116, and it closed at a trading price of $81.75. On the basis of its past growth rate, Tableau’s revenue is projected to grow to $3 billion by 2020. Even though Tableau’s revenue growth is impressive, it needs to consistently maintain operational profitability in the long term.

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