This is another red-hot stock that took a huge hit last week and is offering aggressive accounts a great entry point. Tableau Software Inc. (NASDAQ: DATA) provides business analytics software products in the United States, Canada and internationally. Its Tableau Desktop is a self-service analytics environment that empowers people to access and analyze data independently. Tableau Server and Tableau Public are a free cloud-based platform for analyzing and sharing public data. The company’s business intelligence platform with data management and scalability has the security to foster the sharing of data.
The company announced last year the launch of its Shanghai operations —Tableau (China) — as the company expands in China to better serve customers and partners locally. With 1.3 billion people, a quickly expanding urban economy and exponential rates of Internet and smartphone penetration, China generates an immense amount of data annually. Tableau can help bring that data to life for corporations seeking to assimilate the huge data input.
Like LinkedIn, the company reported inline fourth-quarter results, but it offered up fiscal year 2016 guidance that was way below what Wall Street expected and the stock was destroyed. It has given up almost all the gains since the company went public in 2013. To their credit, the Stifel analysts stand their ground on the stock and note that the poor guidance hardly changed the fact that the company’s competitive positioning remains very strong in its niche areas.
The Stifel price target dropped to $100 from $145, and the consensus target is $117.89. The shares closed Friday at $41.33, down a jaw-dropping 40%.
Lions Gate Entertainment
This is the third in the Stifel triumvirate of very good companies that posted some very bad numbers. Lions Gate Entertainment Corp. (NYSE: LGF) is a premier next generation global content leader with a strong and diversified presence in motion picture production and distribution, television programming and syndication, home entertainment, digital distribution, new channel platforms, video games and international distribution and sales.
The company has nearly 80 television shows on 40 different networks spanning its prime time production, distribution and syndication businesses. These include the critically acclaimed hit series “Orange Is the New Black,” the multiple Emmy Award-winning drama “Mad Men,” the hit broadcast network series “Nashville,” the syndication successes “The Wendy Williams Show” and “Celebrity Name Game” (with FremantleMedia), the breakout series “The Royals” and the Golden Globe-nominated dramedy “Casual.”
The company’s feature film business has been fueled by such successes as the blockbuster Hunger Games franchise, the first two installments of the Divergent franchise, “Sicario,” “The Age of Adaline,” CBS/Lionsgate’s “The Duff,” “John Wick,” “Now You See Me,” Roadside Attractions’ “Love & Mercy” and “Mr. Holmes,” Lionsgate/Codeblack Films’ “Addicted” and Pantelion Films’ “Instructions Not Included,” the highest-grossing Spanish-language film ever released in the United States.
The company posted weaker-than-expected earnings, and hopes for a merger with the Starz network seem to be up in the air for now. Stifel notes that the merger would be accretive and a positive, and feels that at current levels the valuation for the company remains compelling.
The price target is lowered from $42 to $35, while the consensus price objective is at $38.40. Shares closed the day on Friday at $18.53, down a massive 27%.
There you have it, three good companies that were demolished last week. While the Stifel analysts holding their ground is commendable, it often takes fallen angels quite a while to regroup and come back. These are only suitable for very aggressive accounts as more selling in an already weak market could still come to pass.
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