AYX - Alteryx stock slumps ~20% after Piper Sandler downgrades on lower estimates

2023-08-08 09:29:32 ET

Alteryx ( NYSE: AYX ) stock fell ~20% premarket on Tuesday after Piper Sandler downgraded the shares to Neutral from Overweight on lower estimates and a lower CY27 multiple.

The company reported Q2 results which beat estimates but provided a Q3 outlook which was below estimates.

Piper Sandler's analysts said they were lowering their estimates and rating after Q2 ARR shortfall ($14M miss steered by a shift in customer behavior which has made standalone expansions challenging) clouded visibility into the growth trajectory going forward.

The revised 2023 ARR outlook implies that growth could moderate to 12% exiting the year, compared to 31% in Q4'22. The analysts also cut their 2023 and 2024 ARR estimates by $75M and $136M, respectively, factoring in a tougher selling environment along with sales execution challenges.

The analysts added that they were lowering the rating to Neutral and reducing their price target to $30 from $68 on lower estimates and a lower CY27 multiple.

The analysts noted that until there is a clear path to growth stabilization and/or 20%+ growth, Alteryx is likely to be range bound. Even after the over 20% sell-off after hours, upside likely remains limited until growth reaccelerates. They want to see increased visibility into a growth reacceleration but until then they were moving to the sidelines.

More on Alteryx

• Alteryx: Be Cautious On A Leverage Company With Deteriorating Fundamentals
• Alteryx: I'm Not Buying Due To High Uncertainty

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