NEW YORK (TheStreet) -- Shares of Tableau Software Inc. (DATA) are higher by 1.30% to $72.30 in pre-market trading on Tuesday, following a ratings upgrade to "outperform" from "neutral" at Credit Suisse (CS) .
The firm said it raised its rating on the computer software company as it believes Tableau can maintain strong sales growth and top earnings expectations.
Credit Suisse increased its price target on Tableau to $100 from $87.50.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Separately, TheStreet Ratings team rates TABLEAU SOFTWARE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate TABLEAU SOFTWARE INC (DATA) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and unimpressive growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TABLEAU SOFTWARE 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. For the next year, the market is expecting a contraction of 113.3% in earnings (-$0.02 versus $0.15).
- 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 77.6% when compared to the same quarter one year ago, falling from -$2.58 million to -$4.57 million.
- The gross profit margin for TABLEAU SOFTWARE INC is currently very high, coming in at 93.80%. Regardless of DATA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DATA's net profit margin of -5.04% significantly underperformed when compared to the industry average.
- Compared to other companies in the Software industry and the overall market, TABLEAU SOFTWARE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- In its most recent trading session, DATA has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors.
- You can view the full analysis from the report here: DATA Ratings Report
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