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Brave enough to venture into Gartner’s Business Intelligence & Analytics Summit, William Blair analyst Bhavan Suri is convinced Tableau Software ( DATA ) and Qlik Technologies ( QLIK ) will survive the price pressure wrought by Microsoft’s Power BI, and that both remain acquisition candidates. Sound like a Powerball lottery gamble? Microsoft ( MSFT ) offers Power BI business intelligence software for free to 1 gigabyte users and for $9.99 a month for 10-gigabyte users subscribing to Power BI Pro. Cisco Systems ( CSCO ) spent five years analyzing business intelligence products before settling on Qlik, consolidating its data from Oracle ( ORCL ), open-source Hadoop and Teradata ( TDC ) into QlikView and creating a dashboard that made it easy to see actionable intelligence, Qlik says. “Although Power BI appears to be gaining traction faster than we expected, we believe that Tableau and Qlik remain the clear leaders from a technology standpoint and continue to witness healthy deal activity,” William Blair’s Suri said in a research note Monday. “While we intend to watch the competitive situation closely, we maintain our outperform ratings on Tableau and Qlik, based on our view that both can still deliver growth in a world where Power BI sees success, continue to be attractive acquisition candidates, and currently trade at a comfortable discount to intrinsic value.” Qlik stock was up 2% in afternoon trading in the stock market today , near 27.50, after shares last month touched a five-year low below 16. Tableau stock was down a fraction Monday afternoon, near 43.50 and more than 65% off the record high of 131.34 it touched last July. But its shares are 19% higher since touching an all-time low of 36.86 on Feb. 8, following their infamous 49.5% dive after the company missed Wall Street estimates with its earnings and outlook, sending other enterprise software stocks tumbling. Microsoft was up a fraction Monday afternoon. “Despite increasing competition in the space, we view both companies (Qlik and Tableau) as well positioned to deliver double-digit growth for the next few years and significant margin expansion longer-term,” said Suri. “At 2.8 times and 2.6 times our calendar 2017 revenue estimates, respectively, we view Qlik and Tableau as being attractively valued.” He put the average price of business analytics stocks at 2.7 times estimated 2017 revenue and the median at 2.6 times. The group includes Qlik, Tableau, Hortonworks ( HDP ), Datawatch ( DWCH ), Micro Strategy ( MSTR ), New Relic ( NEWR ), PROS Holdings ( PRO ), Splunk ( SPLK ) and Teradata. Scalper1 News
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