Tableau Software Story Is 'Unbroken,' Wall Street Bulls Say

Shares of Tableau Software Inc DATA were down 14 percent on Wednesday. The company announced second quarter financial results that surpassed the Street’s expectations.

The software provider reported earnings of $0.07 per share on revenue of $149.86 million, while experts were modeling consensus earnings of $0.05 per share on sales of $141.04 million.

Following the call, Wedbush and Wunderlich released reports looking into the company. Both research firms remain positive on the long-term story.

Wedbush

After the report, Wedbush analysts Steve Koenig and Jae Cho reiterated an Outperform rating, while reducing their target price to $122.00 from $125.00 “on a slightly lower EV/ revenue multiple, offset by higher FY16 revenue estimates from strong deferred maintenance revenue.”

The analysts assure that Tableau’s story is not broken. They actually think the current valuation opens an “excellent entry point for investors,” and expect Wednesday's correction to end up being “just a bump in the road” for the stock.

The firm notes that, although momentum slowed in the second quarter, its checks suggest that the company’s competitive position, sales cycles, and pricing environment remain unchanged.

Wunderlich

Wunderlich is also bullish on Tableau. After the earnings call, where the company "underwhelmed the Street whisper numbers as revenue growth continues to decelerate as the company reaches scale,” analysts Rob Breza and Ryan MacDonald reiterated Buy rating and $130.00 price target.

They believe “upside remains to management's guidance evidenced by the strong deferred revenue growth of 81% y/y.” In their opinion, the company continues to be “the best strategically positioned company to capture market share within the expanding, next-generation business intelligence category as companies are deluged with insurmountable data.”