Company Name: Alteryx Inc
Entry Price: $114
Target Price: $150
Projected Yield: 31.60%
Time Line: 3 to 6 months
About Alteryx Inc
Alteryx is a US based company providing data processing and analytics software. The company sees its mission in making big data analysis software more accessible and understandable to a user. Alteryx is a major player in the data analysis software market providing its services in over 90 countries. In late Q3 2020, the number of its customers reached 6.95K.
What's the Idea?
Capitalize on a stock, which may rise with general industry development, new management, and stable financial position during the current crisis.
Buy Alteryx Inc Shares >>
Why Trade Alteryx Inc?
Reason 1: Active Big Data Market Expansion
With the digital technologies being actively developed, implementing data analysis into business processes by both large and small companies is becoming a trend. Many companies use big data analysis to gauge future demand and optimize operations.
Alteryx provides a cloud platform with data analysis tools that simplify the analysis process and provide an opportunity to perform analysis without any special skills. Alteryx believes the data analysis tool market is currently worth $49B, while the company's earnings in 2020 are estimated at $495M.
This means the company has good opportunities to further increase its earnings and maintain high growth rates. The pandemic and the economic crisis somewhat slowed down this process, as many companies are reducing costs; however, the gradual recovery process has already started, and the company is adjusting its workflow to the current conditions. The demand for data analysis tools is expected to start growing at a higher rate in the second six months of 2021, which will allow Alteryx to boost sales and expand its market share.
Reason 2: New Management
In early October, Mark Anderson, formerly President of Palo Alto Networks, was appointed CEO of Alteryx. At Palo Alto Networks, Anderson and his team were able to being the company to success, from pre-IPO in 2012 to one of the global leaders in the cybersecurity market. Alteryx also got a new Chief Customer Officer and Chief Revenue Officer.
The new management is going to make changes in some of the company's business processes, which includes rebuilding the sales department and improving customer relation management, optimizing the operational activities, and further platform development. The measures taken by the new CEO should help boost sales and increase business margin.
The implementation of these ideas in the midterm is likely to be successful, since the new CEO and the team have enough experience and knowledge.
Reason 3: Confident Financial Position
The crisis had a negative impact on companies from many industries, which made them start reducing costs. Despite this, Alteryx was able to get over 850 new customers and increase its earnings. The company expects its ARR (Annual Recurring Revenue) to reach $492M to $495M, up 32% or 33%.
In Q1-Q3 2020, Alteryx's operating margin grew to 24%, the financial position being stable and the debt burden, low. The amount of liquid funds fully covers the current debt level, with the company also generating a positive operating cash flow.
The company has enough funds on its balance sheet ($723M) for further business development. This stable financial position helps Alteryx actively expand its market share and maintain high sales growth in the midterm.
How to Use the Idea
- Buy Alteryx Inc shares at $114.
- Allocate no more than 2% of your portfolio amount. To build a balanced portfolio, you can use recommendations by our analysts.
- Sell the stock when the price is at $150 per share.
How to Buy Alteryx Inc?
If you don't have an investment account yet, open it now: this can be done online, in just 10 minutes. All you need to do is fill out a short form and verify your account.
After opening an account, you can buy shares in either of the following ways:
Freedom24 Web Platform: In the Web Terminal section, type AYX.US (Alteryx Inc ticker in the NYSE) in the search box, and select Alteryx Inc in the results. Open a secure session in the trading window on the right, select the number of shares you want to buy, and click Buy.
Freedom24 iPhone or Android App: Go to the Price screen and tab the search icon in the top right corner. In the search dialog that shows up, type AYX.US (Alteryx Inc ticker in the NYSE) and select Alteryx Inc. in the search results. You will then see the stock in the market watch; tap it and go to the Order tab in the dialog that shows up. Specify the number of shares you want to buy and click Buy.
Buy Alteryx Inc to capitalize on the big data market trends!
Buy Alteryx Inc Shares >>
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