This article is more than 10 years old.
How are you supposed to play it?
FBN Securities analyst Shebly Seyrafi attempted to answer that question this morning, launching coverage of a host of Big Data-related companies. He starts Tibco, Splunk, Informatica and Actuate with Outperform ratings; he repeats the same rating on Teradata; and sets a Sector Perform rating on Qlik.
Here's a rundown on his calls:
- Tibco: Outperform rating, $35 target. "A leading player in middleware and is growing its analytics segment quite well."
- Qlik: Sector Peform rating, $24 target. "The company offers a strong data discovery/visualization solution (especially strong in visual drill-down and support) while it still needs to improve its analytics capabilities to better compete with the likes of TIBX and others," he writes, adding that "it is vulnerable to further weakness in Europe," which accounted fo 57% of Q2 revenue.
- Splunk: Outperform rating, $45 target. "A fast-growing leader in machine data management, a fast-growing (and emerging) segment."
- Informatica: Outperform rating, $45 target. "INFA believes that Big Data is the confluence of three technology trends: big transaction data, big interaction data, and big data processing.," he writes. "Unfortunately, the company is now experiencing weaker trends in Europe than many other technology companies, and it had not executed well in the U.S. ... However, this has led to a valuation more in line with its peers (versus the traditional premium). Plus, we believe that the company is addressing its sales execution issues and believe that they should mostly be resolved by the end of this year. In addition, we do not believe that its recent issues were competitive. Therefore, we recommend purchase and believe that investors can be entering this quality name at an attractive entry point."
- Actuate: Outperform rating, $9 target. "Actuate sells an enhanced version of open-source BIRT (Business Intelligence and Reporting Software), an open-source development environment to create compelling data visualizations to users," he writes. "With its ActuateOne product suite introduced in late 2010, it added more business intelligence/analytics features, and has experienced generally strong license revenue growth since."
- Teradata: Outperform rating, $85 target. "The company is a pure-play in the data warehousing market and has highly respected technology," he writes. "It is also a play on “Big Data” as its solutions warehouse important data that business intelligence partners and TDC’s own applications can analyze."
In today's trading:
- Tibco is up 74 cents, or 2.5%, $30.06.
- Qlik is up 36 cents, or 1.6%, to $22.55.
- Splunk is up $1.66, or 4.6%, to $37.59.
- Informatica is up 48 cents, or 1.4%, to $34.66.
- Actuate is up 52 cents, or 8%, to $7.05.
- Teradata is up $2.73, or 3.7%, to $76.19.
