AYX - Alteryx trades higher after Oppenheimer adds to top picks
2023-05-30 08:52:26 ET
Oppenheimer added Alteryx ( NYSE: AYX ) to its top picks and has given the analytics platform developer an Outperform rating.
The firm has a 12-18-months price target of $65 on Alteryx, which has shed ~28% YTD.
Oppenheimer analysts said that the stock declined recently when management didn't cut 2023 ARR targets despite deal push-outs, customer count declining Q/Q for the first time, and productivity gains seemed slow to materialize.
The firm noted that investor concerns about Alteryx's ability to meet its CY23 ARR guidance of $1.2B are overblown and it believes macro headwinds have not changed Q/Q, and deal push outs, mainly tied to SVB, have mostly been resolved in Q2.
The analysts also see limited risk from customer churn. The Total customers declined 0.2% Q/Q in Q1 to 8,338, a potential red flag. But the churn is limited to the low-end of the customer base, as AYX shifts focus to large enterprises (80% ARR from >$100K customers), The firm sees low ARR at risk (low-single-digit percent), with impact restricted to two to three quarters.
The firm added that there is G2K upside potential. The upside with large customers is substantial as a third of G2K customers (>300) spend less than $50K per year and with overall G2K penetration still under 50%.
In addition, the analysts noted that the company has addressed compliance, security gaps.
Oppenheimer said that with Alteryx's valuation at an all-time low, and well below its peers and recent levels, the firm sees the risk-reward as compelling.
AYX +2.71% to $36.80 premarket May 30
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Alteryx trades higher after Oppenheimer adds to top picks