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TechStock Radar
E-mail: Rob@techstockprospector.com
Technorati
May 2017
Archives
 
Tuesday, May 23, 2017, 10:14 AM — by Rob DeFrancesco, TechStock Radar
Stifel Bullish on Cloudera

Stifel initiates coverage of Cloudera (CLDR, $21.16) at ‘Buy’ with a price target of $24, saying the company’s platform is leveraged to benefit from positive secular trends tied to Big Data growth and the shift to the cloud.


The firm believes Cloudera has significant runway left to further increase its penetration of the enterprise market, as the company only has about 500 Global 8000 customers at the moment. 


In addition, Cloudera has the ability to meaningfully increase its wallet share among its installed base because it currently only manages roughly 5% of its customers’ total workloads, says Stifel.


With Cloudera’s impressive net expansion rate averaging ~140% over the past several years, Stifel believes future up- and cross-sell opportunities should enable Cloudera to sustain 30%+ recurring revenue growth over the coming years.


Cloudera went public at the end of April at $15 a share and opened for trading at $17.86.

 
Tuesday, May 23, 2017, 10:04 AM — by Rob DeFrancesco, TechStock Radar
Splunk PT Raised to $75 at RBC

RBC Capital raises its Splunk (SPLK, $66.04) price target to $75 from $70 based on survey results showing consistent demand, record highs for security sales and reduced pricing pressure. 


The firm continues to see upside potential for revenue and billings as well as 200 basis points of operating margin improvement in FY’18 (Jan.).

 
Tuesday, May 23, 2017, 10:01 AM — by Rob DeFrancesco, TechStock Radar
May Issue of TSP Available on Kindle

Download the new issue of Tech-Stock Prospector to your Kindle or Kindle reading app for iOS (iPad & iPhone) and Android. 


Order the latest issue of TSP here.



Here are some of the topics covered in the May 2017 issue:


*Q1 earnings review: Software all-stars

*New use cases drive growth at ServiceNow

*Product expansion benefits HubSpot

*Signs of improvement at Cornerstone OnDemand

*Atlassian makes a smart acquisition

*Cross-selling opportunities at Salesforce

*Tableau Software sees success with subscriptions

*MuleSoft delivers strong Q1 metrics

*Trend Watch: Healthy growth in online ad market

*Facebook continues to dominate mobile ads


*Services revenue shines at Apple

*Protecting against business email compromise

*Emerging products in the spotlight at Proofpoint

*Accelerated revenue growth at Varonis Systems

*Imperva gains traction in cloud security

*New competitive dynamics in cloud communications

*Twilio faces its first major stumble

*IPO Review: How Okta manages access

*Investors breathe sigh of relief on Intel guidance

*Everbridge modernizes emergency notification

 
Monday, May 22, 2017, 11:33 AM — by Rob DeFrancesco, TechStock Radar
A New High for ServiceNow

Shares of ServiceNow (NOW, $102.14) this morning are up more than 2% and have reached a new all-time high at $102.23.


ServiceNow is a core cloud-software holding in the Tech-Stock Prospector Vulture Portfolio, added in August 2014, when the stock was trading at $55.

 
Monday, May 22, 2017, 9:15 AM — by Rob DeFrancesco, TechStock Radar
Goldman Upgrades Nutanix

Goldman Sachs upgrades Nutanix (NTNX, $16) to ‘Buy’ with a price target of $31. Calling Nutanix the leader in hyperconverged infrastructure, the firm says the 40% pullback in the shares YTD provides a “very attractive opportunity.”  


On May 1, Nutanix shares hit a new all-time low of $14.38.

 
Monday, May 22, 2017, 9:10 AM — by Rob DeFrancesco, TechStock Radar
JP Morgan Upgrades Qualcomm

JP Morgan upgrades Qualcomm (QCOM, $57.67) to ‘Overweight’ with a price target of $68 (up from $50), saying material fundamental upside exists from the closure of the NXP Semi (NXPI) acquisition by the end of the year.

 
Friday, May 19, 2017, 10:10 AM — by Rob DeFrancesco, TechStock Radar
Jefferies Upgrades Palo Alto Networks

Jefferies upgrades Palo Alto Networks (PANW, $115.17) to ‘Buy’ and lifts its price target to $150 from $130, saying recent operational weakness is tied more to a major product cycle than sales execution issues or increased competition.


The firm is bullish on Palo Alto’s positioning in the cybersecurity market and expects the company’s business to reaccelerate over the next two quarters.

 
Friday, May 19, 2017, 10:07 AM — by Rob DeFrancesco, TechStock Radar
Deutsche Bank: Cisco Sell-Off Overdone

Deutsche Bank adds Cisco Systems (CSCO, $31.40) to its ‘Short-Term Buy’ list following yesterday’s 7% sell-off. 


The firm calls out the analyst day on June 28 and upcoming product launches as near-term positive catalysts.

 
Thursday, May 18, 2017, 10:25 AM — by Rob DeFrancesco, TechStock Radar
Jefferies Remains Upbeat on Cisco

Jefferies maintains its Cisco Systems (CSCO, $31.27) price target of $37, saying the company’s transition to more of a software-based model is impacting near-term revenue growth. 


While the firm looks for more y/y declines over the next few quarters, it remains optimistic about Cisco’s broad transition to more recurring revenue.


About 31% of Cisco’s total revenue today (+200 basis points y/y) is recurring, with about 75% of that coming from services revenue. Roughly 10% of product revenue is now recurring.

 
Thursday, May 18, 2017, 10:08 AM — by Rob DeFrancesco, TechStock Radar
Cisco Slumps 8% on Light Guide

Shares of Cisco Systems (CSCO, $31.06) this morning are down 8% after the company last night issued weak fiscal Q4 (July) revenue guidance of $11.88 billion to $12.13 billion, below the consensus estimate of $12.5 billion.


Management called out weak orders in the Americas region, listing three causes: U.S. federal (uncertainty around budgets), Mexico (-49% y/y) and a slowdown in the service provider vertical.


On the positive front, deferred product revenue rose 26%, with the portion related to the recurring software and subscription business advancing 57% (+51% ex-AppDynamics).

 
Wednesday, May 17, 2017, 10:44 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Snap

Following last week’s drop to a new post-IPO low of $17.59, Snap (SNAP, $20.24) shares on Monday rebounded to a high of $20.95, but were unable to get back above the 50-day moving average at $21.42. Traders will be watching yesterday’s low of $20.15.

 
Wednesday, May 17, 2017, 10:10 AM — by Rob DeFrancesco, TechStock Radar
Morgan Stanley Hikes Apple PT to $177

Morgan Stanley raises its Apple (AAPL, $152.96) price target to $177 from $161 after the firm’s recent survey of 1,000 U.S. consumers showed a rising iPhone retention rate. 


Fully 92% of iPhone owners who expect to upgrade their handset over the next 12 months plan to stay with Apple, up from an 86% retention rate in last year’s survey.


Morgan Stanley says Apple is positioned to gain more share in the U.S. smartphone market, citing the high loyalty rate among iPhone users and Samsung’s lower retention rate of 77%.

 
Tuesday, May 16, 2017, 10:26 AM — by Rob DeFrancesco, TechStock Radar
Fidelity Boosts ServiceNow Stake

In Q1, Fidelity was a big buyer of ServiceNow (NOW, $98.53), boosting its stake by 91%. The money manager added 1.56 million shares, taking its position up to 3.28 million shares. 


Fidelity is now among the top 15 holders of ServiceNow.


Last week, ServiceNow shares hit a new all-time high of $99.09.

 
Tuesday, May 16, 2017, 10:02 AM — by Rob DeFrancesco, TechStock Radar
Canaccord Lifts Apple Target

Canaccord raises its Apple (AAPL, $155.55) price target to $180 from $165 ahead of the next iPhone launch. The firm believes consumers are already delaying iPhone purchases, a good indication that there will be high demand for the new version coming this fall.

 
Monday, May 15, 2017, 4:07 PM — by Rob DeFrancesco, TechStock Radar
Security Stocks Jump on Cyberattack

Security stocks were strong today following the massive “WannaCry” ransomware attack. 


Here are the big winners in the today’s session:


1-Mimecast (MIME, $26.87)  +10.6%

2-FireEye (FEYE, $15.90) +7.5%

3-Proofpoint (PFPT, $86.05) +7.3%

4-Secureworks (SCWX, $10.14) +6.9%

5-Barracuda Networks (CUDA, $23.04) +5.7%

 
Monday, May 15, 2017, 10:34 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Workday

Workday (WDAY, $94.66) shares this morning are up more than 4% and have hit a new 52-week high at $95.30. The RSI is strong at 74.3. Both the 50- and 200-day moving averages are trending upward. The next major resistance stands at $97.40 from October 2014.

 
Monday, May 15, 2017, 9:26 AM — by Rob DeFrancesco, TechStock Radar
Benchmark Ups Salesforce PT to $110

Benchmark lifts its Salesforce (CRM, $89.04) price target to $110 from $100 ahead of the release of FQ1 earnings this week, saying its checks indicate the company is starting to replace key rivals SAP (SAP) and Oracle (ORCL) as the de facto standard in enterprise business applications. Large global systems integrators (SIs) are now aggressively building out their Salesforce practices.


By leveraging this increasing traction with SIs, Salesforce is well positioned for incremental growth, driven by an increasing number of large enterprise standardization deals going forward, says Benchmark. 


Also positive for Salesforce, the firm’s checks show more favorable spending trends toward front-office, customer-facing and revenue-generating initiatives.

 
Friday, May 12, 2017, 10:36 AM — by Rob DeFrancesco, TechStock Radar
BofA/Merrill Hikes Apple PT to $180

BofA/Merrill raises its Apple (AAPL, $156.04) price target to $180 from $155 based on the company’s ability to continue to gain share in its core markets and find new growth opportunities in additional markets (such as VR, wearables, streaming services and gaming).

 
Friday, May 12, 2017, 10:21 AM — by Rob DeFrancesco, TechStock Radar
CyberArk Slips 10%

CyberArk Software (CYBR, $49.25) shares this morning are down more than 10% after Q2 guidance fell short of expectations.


Last night, CyberArk reported Q1 EPS of 28 cents, five cents above the consensus estimate, on revenue of $59 million (+26% y/y), above the consensus of $57.8 million.


But the company’s Q2 top-line guide of $61 million to $62 million (growth of 21% to 23%) came in below the consensus of $62.4 million. 


BofA/Merrill downgrades CyberArk to ‘Underperform’ and lowers its price target to $42.50 from $61 based on decelerating license revenue growth. In Q1, license revenue was up 20%, vs. 38% growth in the year-ago quarter.

 
Thursday, May 11, 2017, 10:25 AM — by Rob DeFrancesco, TechStock Radar
Barclays Trims Snap Target to $18

Barclays lowers its Snap (SNAP, $18.32) price target to $18 from $24, saying Q1 DAU net adds were not strong enough to disprove the thesis that Facebook (FB) is stunting growth. The firm sees little near-term valuation support given the lack of profitability and upcoming large lock-up expiration.

 
Thursday, May 11, 2017, 10:14 AM — by Rob DeFrancesco, TechStock Radar
Citi Lowers Snap PT to $24

Citi reduces its Snap (SNAP, $18.11) price target to $24 from $27 after Q1 DAUs of 166 million missed its estimate. However, the firm remains constructive on Snap, saying it continues to see the low rate of monetization and the high rate of user engagement enabling longer-term revenue growth.

 
Wednesday, May 10, 2017, 10:16 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Splunk

Splunk (SPLK, $67.59) shares this morning hit a new 52-week high at $67.65. The RSI is strong at 73. 


The next resistance stands at $71.75 from August 2015.

 
Wednesday, May 10, 2017, 10:04 AM — by Rob DeFrancesco, TechStock Radar
Yelp Falls 19%

Shares of Yelp (YELP, $28.03) this morning are down 19% following soft Q2 revenue guidance of $202 million to $206 million, below the consensus estimate of $215.2 million. 


For 2017, Yelp reduces its revenue guidance range:


New: $850 million to $865 million

Old: $880 million to $900 million


RBC Capital downgrades Yelp to ‘Sector Perform’ and cuts its price target to $27 from $49, citing rising churn among advertisers. 

 
Tuesday, May 9, 2017, 10:17 AM — by Rob DeFrancesco, TechStock Radar
Credit Suisse Ups Shopify PT to $95

Credit Suisse raises its Shopify (SHOP, $88) price target to $95 from $90, saying the stock deserves a premium multiple relative to its subscription software peer group because of the company’s unique cloud-based commerce platform and significant merchant/recurring revenue momentum.

 
Tuesday, May 9, 2017, 10:12 AM — by Rob DeFrancesco, TechStock Radar
BMO Capital Downgrades Cisco

BMO Capital downgrades Cisco Systems (CSCO, $34.14) to ‘Market Perform’ and reduces its price target to $35 from $37, citing share losses in switching, a struggling router market and a contracting datacenter business.

 
Monday, May 8, 2017, 10:12 AM — by Rob DeFrancesco, TechStock Radar
Drexel Hamilton Hikes Apple PT to $202

Drexel Hamilton lifts its Apple (AAPL, $150.70) price target to $202 from $185, citing the next iPhone product cycle, potential new innovations and valuation.


The firm believes improving sentiment around the stock remains in the early stages of unfolding, as investors are focused on the upcoming iPhone 8. 

 
Monday, May 8, 2017, 10:05 AM — by Rob DeFrancesco, TechStock Radar
Gigamon Pops 14% on Activist Interest

Shares of Gigamon (GIMO, $40.05) this morning are up more than 14% after activist investor Elliott Associates files a 13D disclosing economic exposure of 15.3%.


For more on Gigamon, see TechStock Radar—April 28, 2017.

 
Friday, May 5, 2017, 11:28 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Tableau

Tableau Software (DATA, $59.95) shares yesterday spiked to a new 52-week high of $63.34 before sellers stepped in. 


The 200-day moving average stands at $50.59. The 50-day moving average has started to turn up from $51.32.


The stock is now in the middle of the large gap on the price chart (from February 2016) that extends all the way up to $77.73.

 
Friday, May 5, 2017, 10:57 AM — by Rob DeFrancesco, TechStock Radar
Varonis Hits New High on Strong Q1

Shares of Varonis Systems (VRNS, $34.70) are up more than 8% today and have hit a new 52-week high at $35.05.


Last night, the provider of solutions to organize, manage and secure unstructured data reported Q1 revenue rose 33% to $40.4 million, topping the consensus estimate of $37.5 million. License revenue was up 38% to $19.2 million.


For Q2, Varonis expects revenue of $47 million to $47.8 million, vs. the consensus of $46.9 million.


The upwardly revised 2017 revenue guidance range is $201 million to $204 million, above previous guidance of $197.3 million to $200.3 million as well as the consensus of $198.6 million.

 
Thursday, May 4, 2017, 10:34 AM — by Rob DeFrancesco, TechStock Radar
Jefferies Hikes Facebook PT to $192

Jefferies takes its Facebook (FB, $150.19) price target up to $192 from $175 following last night’s strong Q1 earnings report. 


Revenue in the March quarter rose 49% to $8.03 billion, topping the consensus estimate of $7.83 billion, while EPS of $1.04 beat the consensus by 18 cents. 


With 1.94 billion monthly active users and 5 million advertisers on the platform, Facebook is a social media powerhouse. 

 
Thursday, May 4, 2017, 10:22 AM — by Rob DeFrancesco, TechStock Radar
BMO Capital Lifts Tableau Target

BMO Capital lifts its Tableau Software (DATA, $58.65) price target to $64 from $55, calling last night’s Q1 report a solid all-around performance. The firm calls out adjusted license bookings growth of 20%. 


Tableau’s Q1 revenue rose 16% to $199.9 million, falling short of the consensus estimate of $200.8 million. But deferred revenue rose 52% to $317.4 million thanks to a continued ramp in the subscription business. Ratable license bookings accounted for 26% of total license bookings (above guidance of 15% to 20%), up from 12% in the year-ago period.


For 2017, Tableau maintained its revenue guidance range of $850 million to $890 million.

 
Wednesday, May 3, 2017, 11:57 AM — by Rob DeFrancesco, TechStock Radar
Paycom Hits New All-Time High

Shares of Paycom (PAYC, $61.71) today hit a new all-time high at $63.13. 


Last night, the provider of cloud-based HCM solutions reported Q1 EPS of 47 cents, six cents above the consensus estimate, on revenue of $119.5 million (+33% y/y), vs. the consensus of $115.8 million.


For Q2, Paycom sees revenue of $94.5 million to $96.5 million, vs. the consensus of $94.7 million.


The company raised its 2017 top-line guidance range:


New: $426 million to $428 million

Old: $422 million to $424 million

Consensus: $423.2 million

 
Wednesday, May 3, 2017, 10:22 AM — by Rob DeFrancesco, TechStock Radar
Goldman Up Apple PT to $164

Goldman Sachs raises its Apple (AAPL, $145.86) price target to $164 from $150 to reflect upside to fiscal 2018 (Sept.) estimates. 


The firm says last night’s FQ2 (March) results were largely in line with expectations. Revenue matched the consensus and EPS beat by eight cents, but iPhone unit sales of 50.8 million missed the consensus estimate of 52.5 million. 


Goldman expects the market to look through the near-term iPhone pause ahead of the upcoming new product cycle.

 
Tuesday, May 2, 2017, 10:38 AM — by Rob DeFrancesco, TechStock Radar
William Blair Still Bullish on Nutanix

William Blair likes the risk/reward set-up on Nutanix (NTNX, $15.62) shares, which so far this year have fallen 41%. 


The company went public in September at $16 a share. Yesterday, the stock hit a new post-IPO low of $14.38.


The firm says its partner checks indicate continued growth within the channel for Nutanix, a provider of hyperconverged infrastructure solutions. Also, William Blair believes Nutanix’s partnership with Dell will remain stable over the near term.


For fiscal 2017 (July), the consensus revenue estimate of $740.5 million represents growth of 66.5%. The FY’18 consensus of $1.02 billion indicates growth of 37.4%.

 
Tuesday, May 2, 2017, 10:22 AM — by Rob DeFrancesco, TechStock Radar
Shopify Delivers Beat-&-Raise Results

Shopify (SHOP, $80.29) reports Q1 revenue rose 75% to $127.4 million, above the consensus estimate of $121.6 million. 


Subscription Solutions revenue was up 60%, while Merchants Solutions revenue advanced 92%. Monthly recurring revenue rose 62% to $20.7 million.


GMV on the platform jumped 81% to $4.8 billion. Gross payments volume of $1.8 billion represented 38% of GMV.


For Q2, Shopify sees revenue of $142 million to $144 million, vs. the consensus of $137 million.


The upwardly revised 2017 revenue guidance range of $615 million to $630 million (previously $580 million to $600 million) easily beat the consensus estimate of $600.6 million.


Shopify shares this morning traded to a new all-time high of $84.58. 


For more on Shopify, see the April 2017 issue of Tech-Stock Prospector (TSP #182).

 
Monday, May 1, 2017, 11:06 AM — by Rob DeFrancesco, TechStock Radar
A New All-Time High for Salesforce

Salesforce (CRM, $86.75) shares this morning hit a new all-time high at $86.88. 


So far this year, the stock is up 26%.

 
Monday, May 1, 2017, 10:53 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Workday

Shares of Workday (WDAY, $88.35) continue to rebound off of the March/April lows and are trying to get through short-term resistance at $88.43. There is stronger resistance at $92.46 from late February. The RSI is rising from 69.2.

   
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