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TechStock Radar
E-mail: Rob@techstockprospector.com
Technorati
November 2017
Archives
 
Thursday, November 30, 2017, 10:25 AM — by Rob DeFrancesco, TechStock Radar
Workday Dips Following FQ3 Report

Workday (WDAY, $104.11) last night reported fiscal Q3 (Oct.) revenue rose 34% to $555.4 million, easily beating the consensus estimate of $540.6 million. EPS of 24 cents topped the consensus by nine cents.

Subscription revenue advanced 37% to $463.6 million, coming in above the high end of the guidance range of $450 million to $452 million.

International revenue of $116 million (21% of total revenue) advanced 48%.

However, deferred revenue of $1.23 billion (+21.5% y/y) fell short of expectations, with billings a little light. Given the high valuation, traders this morning are taking down WDAY shares by more than 2% based on those metrics.

Workday’s outlook for FQ4 is positive: revenue of $571 million to $573 million, vs. the consensus of $556.3 million.

 
Thursday, November 30, 2017, 9:45 AM — by Rob DeFrancesco, TechStock Radar
Davidson Boosts Amazon PT to $1,500

DA Davidson takes its Amazon (AMZN, $1,167) price target up to $1,500 from $1,300 based on the argument that the company will increasingly leverage physical stores to boost its revenue growth and wallet share.

In the future, the firm looks for Amazon to roll out its Amazon Go proprietary technology to enable consumers to skip the checkout counter for the portion of Whole Foods stores where shoppers can purchase prepared foods.

Increasingly, consumers will be able to pick up online purchases and process returns at Whole Foods locations, says Davidson. Also, the firm expects more floor space at Whole Foods to be devoted to Amazon’s proprietary hardware.

 
Wednesday, November 29, 2017, 11:49 AM — by Rob DeFrancesco, TechStock Radar
Jefferies Lifts Marvell PT to $28

Jefferies raises its Marvell Technology (MRVL, $22.24) price target to $28 from $27, citing last night’s solid FQ3 (Oct.) report and upbeat FQ4 guidance.

For the January quarter, Marvell sees revenue of $595 million to $625 million, above the consensus estimate of $589.9 million.

The firm sees multiple tailwinds across Marvell’s operating segments, and continues to expect the Cavium (CAVM) acquisition to create scale and revenue synergies.

For more on Marvell, see TechStock Radar—Nov. 21, 2017.

 
Wednesday, November 29, 2017, 11:42 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Atlassian

A broad sell-off today across the tech sector is taking down some of the recent high flyers, including Atlassian (TEAM, $47.86), which is off more than 6% on heavy volume.

The shares in the middle of November hit a new all-time high of $53.45, rallying 61% off of the September low of $33.16.

There’s short-term support at $46.40. The 50-day moving average is trending upward from $44.86.

 
Tuesday, November 28, 2017, 10:30 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: F5 Networks

F5 Networks (FFIV, $125.58) stock has pushed through short-term congestion in the $124 area and is now approaching the downward sloping 200-day moving average of $127.75.

There’s short-term resistance at $127.50 from October, with additional resistance at $129.25 and $130 from July.

The 50-day moving average is trending upward from $119.83.

 
Tuesday, November 28, 2017, 9:34 AM — by Rob DeFrancesco, TechStock Radar
Goldman Lifts Amazon Target to $1,450

Goldman Sachs ups its Amazon (AMZN, $1,202) price target to $1,450 from $1,300. The firm expects this week’s AWS user conference to offer new product and partnership announcements. Goldman thinks AI, machine learning, IoT services and “serverless” will be the most talked about topics at the AWS re:Invent 2017 event.
 
Monday, November 27, 2017, 10:17 AM — by Rob DeFrancesco, TechStock Radar
Black Friday Success at Shopify

On Black Friday, more than $1 million in sales went through the Shopify (SHOP, $116.21) platform per minute at the peak, beating last year’s high of $555,716. Mobile accounted for 66% of orders, up from 58% last year.

KeyBanc lifts its Shopify price target to $140 from $116 based on increased confidence in the company’s machine learning opportunities.

Shopify shares continue to rebound from the October low of $89.35. The stock is now back above its 50-day moving average of $105.45. The 200-day moving average is trending upward from $90.11.

The all-time high of $123.94 was reached in September.

 
Monday, November 27, 2017, 9:42 AM — by Rob DeFrancesco, TechStock Radar
Barracuda Going Private

Barracuda Networks (CUDA, $27.43) will be taken private by Thoma Bravo at $27.55 a share in an all-cash deal worth $1.6 billion.

The valuation is 4.2x forward revenue, with top-line growth of 6.9%.

Barracuda shares this morning are up more than 15%.

The company, a provider of easy-to-use security & storage solutions for the SMB market, went public in November 2013 at $18 a share, with an opening trade at $22.20.

 
Monday, November 27, 2017, 9:27 AM — by Rob DeFrancesco, TechStock Radar
Cowen Bullish on Marvell

Cowen names Marvell Technology (MRVL, $23.80) a Best Idea for 2018, saying the planned Cavium (CAVM) acquisition offers growth opportunities in both storage and networking. The firm reiterates its price target of $29.

For more on Marvell, see TechStock Radar—November 20, 2017.

 
Wednesday, November 22, 2017, 10:19 AM — by Rob DeFrancesco, TechStock Radar
Needham Sets Nutanix PT at $45

Needham starts Nutanix (NTNX, $32.21) at ‘Buy’ with a price target of $45, saying significant longer-term upside exists if investors begin to revalue the company as a pure-play software vendor. The firm thinks that’s likely given the true value proposition of the company’s product portfolio.

On the positive report, Nutanix shares this morning are up more than 6%.

Nutanix delivers a disruptive product that solves customer pain points. The company is benefiting from changes in enterprise infrastructure. But investor perception today regards Nutanix as more like a commodity-hardware player, vs. a next-generation datacenter operating system company, says Needham.

In the July 2017 issue of Tech-Stock Prospector (TSP #185), we pointed out Nutanix’s modest valuation, when the stock was trading at $19.12. For more on Nutanix, see the October 2017 issue of Tech-Stock Prospector (TSP #188).

 
Wednesday, November 22, 2017, 9:55 AM — by Rob DeFrancesco, TechStock Radar
Barclays Upgrades Marvell

Barclays upgrades Marvell Technology (MRVL, $23.87) to ‘Overweight’ and lifts its price target to $30 from $20, saying it believes the Cavium combination makes sense strategically from a product, R&D and customer perspective. In addition, the deal would add top-line growth and bottom-line accretion (estimated to be 27 cents in 2019 and 33 cents in 2020).

The firm says the concern with Marvell has always centered around muted revenue growth. The Cavium acquisition would help solve that problem, leveraging a growing processor franchise with several new products (including LiquidIO II, LiquidSecurity and ThunderX2). The Ethernet and processor families are highly complementary, but also create scale to better compete with larger chipmakers, according to Barclays.

Marvell shares this morning hit a new multi-year high at $24.22.

 
Wednesday, November 22, 2017, 9:38 AM — by Rob DeFrancesco, TechStock Radar
Davidson Ups Mellanox Target

DA Davidson raises its Mellanox (MLNX, $56.15) price target to $69 from $60 after Starboard Value this week disclosed an activist stake of 9.8%.

The firm believes management at Mellanox, a provider of intelligent interconnect solutions, will be open to input from Starboard, with the goal to achieve additional operating efficiencies and leverage. However, more significant changes would require Starboard to seek greater control at the board level, says Davidson.

 
Tuesday, November 21, 2017, 10:02 AM — by Rob DeFrancesco, TechStock Radar
Palo Alto Pops 9% on Strong FQ1

Palo Alto Networks (PANW, $155.50) shares this morning are rallying more than 9% after last night’s fiscal Q1 (Oct.) earnings report beat expectations on both the top and bottom lines.

Revenue rose 27% to $505.5 million, above the consensus of $489 million. Subscription revenue expanded 40% to $169.3 million, representing a third of total revenue.

For FQ2, Palo Alto sees revenue of $518 million to $528 million, vs. the consensus of $519.9 million.

Bernstein lifts its PANW price target to $200 from $180, saying guidance for FY’18 implies healthy subscription billings growth of 20% to 23%.

Palo Alto Networks is a long-term cybersecurity holding in the Tech-Stock Prospector Vulture Portfolio, added in June 2013, when the stock traded at $39.42.

 
Tuesday, November 21, 2017, 9:33 AM — by Rob DeFrancesco, TechStock Radar
Jefferies Upgrades Marvell to 'Buy'

Jefferies upgrades Marvell Technology (MRVL, $22.15) to ‘Buy’ with a price target of $27 (up from $18.50) following the announcement of the planned acquisition of Cavium (CAVM). The firm says the deal creates better scale and offers product portfolio synergies. Jefferies estimates 2019 earnings power of $1.79 a share, representing 43% accretion.
 
Monday, November 20, 2017, 10:32 AM — by Rob DeFrancesco, TechStock Radar
BMO Capital Bullish on Broadcom

BMO Capital resumes coverage of Broadcom (AVGO, $272.43) at ‘Outperform’ with a price target of $330, saying the company continues to translate its acquisitions into meaningful earnings and free cash flow (FCF) accretion.

The firm is positive on Broadcom’s bid for Qualcomm (QCOM, $66.68). If the proposed deal gets done, BMO Capital thinks it could lead to combined-company FCF doubling to roughly $20 billion.

The firm estimates Broadcom shares could be valued at $410 to $450 if the transaction goes through. Some on Wall Street think Broadcom is going to have to offer at least $80 a share for Qualcomm to get the transaction completed, above the current offer of $70.

 
Monday, November 20, 2017, 9:42 AM — by Rob DeFrancesco, TechStock Radar
Marvell to Acquire Cavium

Marvell Technology (MRVL, $20.67) will pay roughly $80 a share in stock & cash for chipmaker Cavium (CAVM, $81.90) in a buyout worth around $6 billion.

Announced this morning, the transaction involves $40 a share in cash and 2.1757 worth of Marvell shares.

Marvell says the deal expands its serviceable addressable market to $16 billion+ from more than $8 billion on a standalone basis.

The addition of Cavium diversifies Marvell’s revenue base away from a concentration on storage, while creating a bigger datacenter-focused unit. Combined annual revenue is estimated at $3.4 billion.

Cavium has been a rumored buyout target for years. In the October 2011 issue of Tech-Stock Prospector (TSP #116), we wrote about how some on Wall Street viewed Marvell as a potential acquirer even back then. At the time, Cavium shares traded around $29.

 
Friday, November 17, 2017, 10:18 AM — by Rob DeFrancesco, TechStock Radar
Wall Street Gets More Bullish on Splunk

Canaccord raises its Splunk (SPLK, $81.10) price target to $90 from $80, citing solid FQ3 execution and raised guidance.

Mizuho upgrades Splunk to ‘Buy’ with a price target of $90, saying it has increased confidence in the company’s long-term financial targets.

Jefferies takes its target up to $88 from $81 based on strong large-deal flow, while Deutsche Bank goes to $85 from $75 because of accelerated license revenue growth and billings growth.

JMP Securities lifts its target to $85 from $70, calling Splunk the leader in operational intelligence software. The firm believes Splunk has a long runway to sustain double-digit growth.

Splunk shares this morning hit a new 52-week high at $81.54.

 
Friday, November 17, 2017, 9:42 AM — by Rob DeFrancesco, TechStock Radar
Splunk Jumps on Strong FQ3 Report

An excellent FQ3 (Oct.) earnings report last night from Splunk (SPLK, $79.04) is sending the shares surging 14%. A new 52-week high was reached this morning at $80.

Revenue of $328.6  million easily beat the consensus estimate of $309.2 million. Top-line growth accelerated to 34% from 32% in FQ2 and 30% in FQ1.

Billings jumped 38%, acceleration from +32% in FQ2 and +30% in FQ1.

For FQ4, Splunk sees revenue of $388 million to $390 million, vs. the consensus of $383.6 million.

Splunk is a long-term holding in the Tech-Stock Prospector Vulture Portfolio.

Back in the March 2017 issue (TSP #181), we set a fair-value price target for Splunk of $79.30, with a bullish-case target of $88.65. With the shares trading around $62.40 at the time, we wrote that pullbacks into the $50s would offer an especially attractive risk/reward set-up.

Since that report in March, the stock dipped into the $50s multiple times, even hitting a new 52-week low of $54.17 in the middle of June. As recently as August 15, Splunk shares traded below $57.50.
   
Buyers began stepping back into the stock following the company’s strong fiscal Q2 results in late August, sparking a rally into the upper $60s. Splunk shares ended 2016 at $51.15.

 
Thursday, November 16, 2017, 10:28 AM — by Rob DeFrancesco, TechStock Radar
JMP Upgrades BlackLine

Shares of BlackLine (BL, $37.74) this morning are gaining 5.5% after a JMP Securities upgrade to ‘Outperform’ with a price target of $45.

The firm believes the provider of cloud-based accounting & finance software is well-positioned to close larger, more strategic deals.

In Q3, revenue rose 42% to $45.9 million, topping the consensus estimate of $44.1 million. BlackLine in the latest quarter added 113 net new accounts and now has a customer base of 2,091. There are 186,461 total users, up from 178,604 in Q2.

While BlackLine faces a very difficult billings growth comparison in Q4, comps become much easier throughout 2018, says JMP.

 
Thursday, November 16, 2017, 9:53 AM — by Rob DeFrancesco, TechStock Radar
Rockwell Pops 6% on Takeover Offer

Rockwell Automation (ROK, $200.13) shares this morning are up 6% after Emerson (EMR) formally offered to acquire the company for $225 a share, consisting of $135 a share in cash and $90 in Emerson stock. The deal would have a total enterprise value of $29 billion.

Rockwell is one of the leading providers of automation hardware and software used for automotive assembly and other manufacturing processes. We profiled the company as part of our robotics feature in the March 2017 issue of Tech-Stock Prospector (TSP #181). At the time, Rockwell shares traded around $153.

 
Wednesday, November 15, 2017, 9:49 AM — by Rob DeFrancesco, TechStock Radar
RBC Ups Qualcomm Target to $77

RBC Capital lifts its Qualcomm (QCOM, $65.65) price target to $77 from $70. Now that Qualcomm has rejected the buyout offer from Broadcom, the firm expects the latter to go the route of a proxy battle and potentially higher bid.

RBC thinks investors will select the Broadcom option if the price is right: high-$70s to low-$80s.

For more on Qualcomm, see TechStock Radar—November 8, 2017.

 
Wednesday, November 15, 2017, 9:15 AM — by Rob DeFrancesco, TechStock Radar
Piper Jaffray Boosts Splunk Target

Piper Jaffray raises its Splunk (SPLK, $68.35) price target to $80 from $71 ahead of the release of FQ3 results tomorrow after the close, saying its checks suggest improving fundamentals. The firm calls out strength in security and solid momentum in the federal business in the latest quarter. Piper sees the potential for revenue and billings acceleration.
 
Tuesday, November 14, 2017, 9:08 AM — by Rob DeFrancesco, TechStock Radar
Barclays Bullish on MongoDB

Barclays starts MongoDB (MDB, $30.68) at ‘Overweight’ with a price target of $38 based on the company’s potential to disrupt the $40-billion database market, which has seen little movement during the past 20 years.

Relational databases continue to dominate the space, with the two main providers (Oracle and Microsoft) continuing to capture the bulk of the economics, says Barclays. However, with different requirements in terms of scale and types of data, the firm sees an opportunity for new database approaches (such as NoSQL) to capture a growing share.

MongoDB is the largest and most prominent of the next-generation database providers. The company went public in October 2017 at $24, with the opening trade at $33. The post-IPO high of $34 was reached on the first session.

 
Tuesday, November 14, 2017, 9:02 AM — by Rob DeFrancesco, TechStock Radar
Canaccord Ups Qualcomm PT to $83

Canaccord ups its Qualcomm (QCOM, $66.49) price target to $83 from $76 after the chipmaker rejected Broadcom’s buyout offer of $70 a share.

The firm believes the combination of the two companies could generate strong synergies, creating a dominant wireless business and overall global semiconductor leader. Thus, Canaccord says Broadcom is likely to increase its bid.

 
Monday, November 13, 2017, 9:36 AM — by Rob DeFrancesco, TechStock Radar
Qualcomm Responds to Broadcom Bid

The Qualcomm (QCOM, $65.61) board of directors has rejected the takeover offer from Broadcom (AVGO, $262), saying it “significantly undervalues” the company relative to its leadership position in mobile and future growth prospects.
 
Monday, November 13, 2017, 9:11 AM — by Rob DeFrancesco, TechStock Radar
Barclays Boosts Intel Target to $55

Barclays lifts its Intel (INTC, $45.58) price target to $55 from $45, saying there are ample positive drivers still ahead—including free cash flow improvement from cost controls, better overall PC trends and the ramping 10nm business.
 
Friday, November 10, 2017, 11:45 AM — by Rob DeFrancesco, TechStock Radar
Accelerated Growth at Mimecast

Mimecast (MIME, $30.87), a provider of cloud-based email security solutions, saw accelerated revenue growth in its latest quarter.

In FQ2 (Sept.), revenue of $63.1 million (above the consensus of $60 million) rose 42%, up from growth of 40% in the previous quarter. The company added 900 net new customers and now has a total count of more than 28,200.

For FQ3, Mimecast sees revenue of $64.3 million to $65.0 million, above the consensus of $63.4 million.

The new FY’18 (March) revenue guidance range of $251.8 million to $254.5 million (revised upward from $246.8 million to $252.1 million previously) represents midpoint growth of 35.7%, vs. the consensus estimate growth rate of 33.7%.

We profiled Mimecast in the September 2016 issue of Tech-Stock Prospector (TSP #175), when the stock traded at $17.15. At the end of last month, the shares hit a new all-time high at $32.

For more on Mimecast, see the November 2017 issue (TSP #189).

 
Friday, November 10, 2017, 9:37 AM — by Rob DeFrancesco, TechStock Radar
Piper Jaffray Still Upbeat on PANW

Piper Jaffray maintains its Palo Alto Networks (PANW, $139.67) price target of $155, saying the company in FQ2 and FQ3 faces easy comparisons for both product revenue and billings.

While reseller checks suggest depressed demand from large enterprise customers, the firm believes that does not represent much change from FQ3 and FQ4, and is already factored into Palo Alto’s guidance.

 
Thursday, November 9, 2017, 11:02 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Electronic Arts

Electronic Arts (EA, $111.76) shares are trying to hold short-term support around the $110 level.

The 50-day moving average has turned downward from $116.92, while the 200-day moving average continues to trend upward from $105.32.

There’s additional support at $105.20 from early July.

For more on EA, see TechStock Radar—October 4 & 18, 2017.

 
Thursday, November 9, 2017, 10:27 AM — by Rob DeFrancesco, TechStock Radar
UBS Bullish on ServiceNow

A new analyst at UBS takes over coverage of ServiceNow (NOW, $126.36) at ‘Buy’ with a price target of $168 (up from $128), saying the company currently offers the best mix of growth and margins in the software group.

For more on ServiceNow, see the November 2017 issue of Tech-Stock Prospector (TSP #189).

 
Wednesday, November 8, 2017, 10:40 AM — by Rob DeFrancesco, TechStock Radar
Rapid7 +7% on Strong Q3 Report

Rapid7 (RPD, $19.12) shares this morning are gaining nearly 8% after the provider of security data analytics solutions last night reported Q3 revenue growth of 25% and offered upbeat guidance.

In Q3, revenue of $50.5 million topped the consensus estimate of $49.8 million. Billings of $58.7 million were up 31%, acceleration from 20% growth in Q2. In the year-ago quarter, Rapid7’s billings rose just 9.5% on pushed-out deals.

For Q4, Rapid7 sees revenue of $53.9 million to $55.3 million, vs. the consensus of $54.3 million.

For more on Rapid7, see the November 2018 issue of Tech-Stock Prospector (TSP #189).

 
Wednesday, November 8, 2017, 9:26 AM — by Rob DeFrancesco, TechStock Radar
RBC Capital Upgrades Qualcomm

RBC Capital upgrades Qualcomm (QCOM, $64.10) to ‘Outperform’ and raises its price target to $70 from $55, saying the valuation at current levels is attractive regardless of the bid from Broadcom (AVGO).

The firm believes the odds are low that the initial $70 offer is the final price. RBC sees revised bids reaching the high-$70s to low-$80s range.

Even if Qualcomm ends up remaining independent, the firm says the roadmap to value creation is compelling, as the company has the NXP Semi (NXPI) acquisition in the works.

 
Tuesday, November 7, 2017, 9:48 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Splunk

After successfully testing the 200-day moving average at last month’s low of $62.39, shares of Splunk (SPLK, $68.79) have moved back near the 52-week high of $69.61 reached in September. The RSI is up to 67.8. The 50-day moving average is trending upward from $66.48.
 
Tuesday, November 7, 2017, 9:35 AM — by Rob DeFrancesco, TechStock Radar
SunTrust Ups Broadcom PT to $325

SunTrust raises its Broadcom (AVGO, $273.49) price target to $325 from $281 based on the company’s strategy of using M&A to generate earnings growth.

The firm expects Broadcom to nominate a slate of directors after Qualcomm’s likely rejection of the $70/share bid.

 
Monday, November 6, 2017, 11:15 AM — by Rob DeFrancesco, TechStock Radar
Morgan Stanley Remains Bullish on Apple

Morgan Stanley reiterates its Apple (AAPL, $174.36) price target of $200 after reviewing the company’s latest 10-K filing.

The firm calls out strong growth in three key metrics (off-balance sheet purchase commitments, vendor non-trade receivables and inventory), indicating evidence of preparation for a strong iPhone cycle. The last time these metrics were so strong was at the start of the iPhone 6 supercycle.

 
Monday, November 6, 2017, 10:54 AM — by Rob DeFrancesco, TechStock Radar
Broadcom Makes an Offer for Qualcomm

Broadcom (AVGO, $274.24) has offered to buy rival chipmaker Qualcomm (QCOM, $63.28) for $70 a share in a cash/stock deal worth more than $100 billion (plus the assumption of $25 billion in net debt). The offer represents a 28% premium over Qualcomm’s closing price on November 2.

Broadcom is interested in Qualcomm regardless of how the latter’s proposed acquisition of NXP Semi (NXPI, $116.80) plays out. Qualcomm announced the deal to buy NXP Semi in October 2016, but has yet to close on it because of regulatory scrutiny.

We covered Qualcomm in the February 2016 issue of Tech-Stock Prospector (TSP #168), when the shares were trading around $44. At the time, we wrote that the stock’s risk/reward balance was attractive and called out the high dividend yield.

 
Friday, November 3, 2017, 11:08 AM — by Rob DeFrancesco, TechStock Radar
BMO Capital Ups Salesforce Target

BMO Capital lifts its Salesforce (CRM, $102) price target to $112 from $105, saying the risk/reward profile is attractive.

The firm calls out some near-term catalysts that could drive the stock higher, including the launch of new products at the upcoming Dreamforce user conference and access to broader data sets for added customer leverage.

 
Friday, November 3, 2017, 10:45 AM — by Rob DeFrancesco, TechStock Radar
Apple Shares Hit New High

Apple (AAPL, $172.22) shares this morning hit a new all-time high at $174.24.

Apple is a long-term holding in the Tech-Stock Prospector Vulture Portfolio, added in May 2013, when the stock was trading at $61.68.

The company last night reported fiscal Q4 (Sept.) EPS of $2.07, beating the consensus estimate by 20 cents. Revenue of $52.6 billion came in well above the consensus of $50.8 billion. Product sales were strong across the board, driven by iPhone.

For FQ1, Apple sees revenue of $84 billion to $87 billion, with the midpoint slightly above the consensus of $85.3 billion.

Citi boosts its AAPL price target to $200 from $170, saying the company can return to sustainable growth thanks to the newer handsets. In the meantime, demand for older and lower-priced iPhones is holding up better than expected, giving the iPhone X cycle time to ramp.

 
Thursday, November 2, 2017, 10:43 AM — by Rob DeFrancesco, TechStock Radar
CyberArk Pops 7% on Q3 Report

CyberArk Software (CYBR, $44.63) shares this morning are up more than 7% after the company reports Q3 EPS of 25 cents, six cents better than the consensus estimate, on revenue of $64.8 million (+18% y/y), above the consensus of $62.6 million. License revenue rose 7.5% to $35.8 million.

For Q4, CyberArk sees revenue of $75 million to $76 million (growth of 17.5% at the midpoint), vs. the consensus of $75.5 million.

CyberArk shares are rebounding from the 52-week low of $39.34 reached in August.

 
Thursday, November 2, 2017, 9:42 AM — by Rob DeFrancesco, TechStock Radar
JP Morgan Ups Facebook PT to $225

After Facebook (FB, $180.10) last night delivered Q3 revenue growth of 47%, acceleration from +45% in the previous quarter, JP Morgan raises its price target to $225 from $210, saying the company is showing a rare and impressive combination of scale, growth and profitability. In Q3, EPS of $1.59 beat the consensus estimate by 31 cents.

The firm believes Facebook’s guidance for a significant acceleration in operating expenses in 2018 will likely prove conservative. Management has a well-documented history of lowering its expense guidance throughout the course of the year, says JP Morgan.

 
Wednesday, November 1, 2017, 12:17 PM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Shopify

Shopify (SHOP, $95.98) shares continue to come under selling pressure following the release of Q3 results. The RSI is down to 39.9. Traders are keeping an eye on yesterday’s low of $94.51. There is short-term support at the October low of $89.35. The 200-day moving average is trending upward from $85.72.

KeyBanc remains positive on Shopify, saying it would be a buyer on the pullback. The firm believes the company’s prioritization of growth over profitability in the near-term seems to be weighing on the stock.

Piper Jaffray maintains its SHOP price target of $110, saying it believes management baked in more conservatism into the Q4 outlook than in Q3 given the holiday season’s impact on GMV. The firm sees Q4 revenue coming in closer to $215 million to $220 million, vs. guidance of $206 million to $208 million.
 
Wednesday, November 1, 2017, 12:01 PM — by Rob DeFrancesco, TechStock Radar
Check Point Shares Off 11%

Check Point Software (CHKP, $104.30) shares today are down more than 11% after the security solutions vendor offered below-consensus revenue guidance.

Blaming sales execution issues in the U.S., the company expects Q4 revenue of $485 million to $525 million, vs. the consensus of $529.4 million.

RBC Capital lowers its CHKP price target to $115 from $120 because of the near-term sales challenges. The firm believes the issue is company specific.

Credit Suisse reduces its target to $105 from $110, saying it continues to have a negative view of the overall firewall category. Stephens cuts its target to $110 from $122, citing headwinds from a shift to cloud and increased competition.

   
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