NEW YORK (TheStreet) -- Barclays upgraded Qlik Technologies (QLIK - Get Report) to "overweight" from "equal weight" and set a $31 price target. The firm said the pending release of QV.Next should be likely contributor to meaningful upside.
The stock was up 4.02% to $22 in pre-market trading on Monday.
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- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 96.0% when compared to the same quarter one year ago, falling from -$13.21 million to -$25.88 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Software industry and the overall market, QLIK TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 32.32%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 93.33% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- QLIK TECHNOLOGIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, QLIK TECHNOLOGIES INC swung to a loss, reporting -$0.12 versus $0.04 in the prior year. This year, the market expects an improvement in earnings ($0.25 versus -$0.12).
- The gross profit margin for QLIK TECHNOLOGIES INC is currently very high, coming in at 86.08%. Regardless of QLIK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, QLIK's net profit margin of -23.29% significantly underperformed when compared to the industry average.
- You can view the full analysis from the report here: QLIK Ratings Report