Why Tableau Software Inc Will Fly to $95
While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.
What: Shares of Tableau Software Inc climbed 4% on Tuesday after Baird upgraded the business analytics technologist from neutral to outperform.
So what: Along with the upgrade, analyst Steven Ashley planted a price target of $95 on the stock, representing about 25% worth of upside to yesterday's close. So while momentum traders might be turned off by Tableau's sharp share-price pullback in recent weeks, Ashley's call could reflect a growing sense on Wall Street that its growth potential is becoming too cheap to pass up.
Now what: According to Baird, Tableau's long-term risk/reward trade-off is highly attractive at this point. "Being ranked No.1 in 2014 Gartner MQ for 'Ability to Execute' should only further enhance market awareness," Ashley said. "Partners continue to believe Tableau has only scratched the surface of its market opportunity. The upgrade is really not a call on 1Q14, which we expect to be a normal/strong quarter that should match Investor expectations." Of course, with Tableau shares still up more than 80% from their 52-week lows and trading at a lofty price-to-sales of 20, I'd hold out for an even wider margin of safety before jumping in.
3 stocks poised to be multi-baggers
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have found multi-bagger stocks time and again. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.
The article Why Tableau Software Inc Will Fly to $95 originally appeared on Fool.com.Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.