Stifel: Time To Buy Tableau Software

April 16, 2015

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In a report published Thursday, Stifel analysts initiated coverage of Tableau Software Inc (NYSE: DATA) with a Buy rating and a price target of $115. The analysts believe that not only is the company a leader in the Business Intelligent market, but is also well positioned to take on a leadership position in the data visualization segment of this market, going forward.

“The company has a multi-layered, land-and-expand sales strategy that is driven, first and foremost, by its superior product performance and simplified user experience, capitalizing on free demo downloads by front-line information workers evangelizing the product within their functional groups and overall enterprise,” the analysts explained.

Tableau has been witnessing unparalleled growth in the on-premises software arena, with customer surveys showing that the company is highly appreciated for the breadth of its solutions, ease of use and quick time to value. The analysts believe that this is “a very solid triumvirate of strengths.”

Tableau has emerged as the industry leader in the Data Discovery market, with more than 80 percent five-year revenue CAGR. The primary advantage that the company offers is that businesses of all sizes can either use Tableau’s offering as a stand-alone solution or integrate it with their existing business intelligence solution. This allows ease of adoption, while the interface is intuitive and easy to use.

It is this ease of adoption that has made Tableau the industry leader today and the analysts expect the company’s industry-leading growth rates to continue over the next several years. In addition, Stifel believes that the company has “significant international growth opportunity, with less than 25% of license revenue currently from outside of North America.”