AYX - Alteryx rises as Loop Capital upgrades citing recent positive checks

2023-04-24 07:58:27 ET

Alteryx ( NYSE: AYX ) shares rose more than 3% in premarket trading on Monday as investment firm Loop Capital upgraded the software company, citing recent positive checks into sales.

Analyst Yun Kim raised his rating on buy to hold with a per-share price target of $65, noting that the "recent solid sales momentum" seen over the past several quarters can likely be sustained for not only this year, but the next several, citing checks with global system integrators, or GSIs.

"Given that GSIs are making a considerable investment in building up their AYX practice with dedicated, trained consultants, we are more comfortable that the company's current solid sales momentum can be sustained going forward," Kim wrote in an investor note.

Kim added that GSIs have started to expand the use case for Alteryx ( AYX ), especially around cloud data warehousing deployments.

"Overall, given that AYX's key partners are making incremental investments, we believe this is not only reflective of incremental demand in the market but also provides the basis for the current solid sales momentum to continue," Kim explained.

Other positives for Alteryx ( AYX ) include a "relatively low" sales force turnover despite efforts from competitors to get them to jump ship; a renewal base in 2023 that is larger than it was in 2022; the continued hiring of the sales force to reach full capacity; and a higher expansion rate than Wall Street is expecting, based on last quarter's data.

Alteryx ( AYX ) is slated to host first-quarter results on April 27 after the close of trading and an analyst day at its Inspire 2023 conference next month.

Last month, Alteryx ( AYX ) upsized its debt offering to $450M from $350M for its 8.75% senior unsecured notes due 2028 .

Analysts are largely bullish on Alteryx ( AYX ). It has a HOLD rating from Seeking Alpha authors , while Wall Street analysts rate it a BUY . Conversely, Seeking Alpha's quant system, which consistently beats the market, rates AYX a STRONG BUY .

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