NEW YORK (TheStreet) -- Tableau Software (DATA - Get Report) stock is down by 5.95% to $38.87 in mid-morning trading on Monday, after the company was downgraded to "equal weight" from "overweight" at Morgan Stanley. The firm cut its price target on the stock to $55 from $125.
Shares of the analytics and business intelligence software company dropped last week after Tableau provided weak 2016 first quarter guidance. Tableau showed top line growth that was "far less durable than we expected," Morgan Stanley said in a note on Monday.
"With new transaction volumes holding up well, it appears the slower growth stems more from a reduced ability to up sell existing customers - speaking more to macro or saturation concerns versus competitive issues," the firm added.
The company's increased investments in sales won't be effective until sales productivity improves, Morgan Stanley said.
Additionally, Tableau's outlook cast doubt on similar "big data" and analytics companies such as Qlik (QLIK) and Workday (WDAY), TheStreet's Jim Cramer said in a Real Money article last week (free access during TheStreet's Open House).
Tableau "is now a tainted growth stock of unbelievable proportions, with the core licensing business slowing from 57% growth to 31%," Cramer said.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "sell" with a ratings score of D. This is driven by a few notable weaknesses, 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 deteriorating net income, disappointing return on equity and feeble growth in its earnings per share.
You can view the full analysis from the report here: DATADATA data by YCharts