TUFN - Tufin Software: Buy The Sell-Off After Surprise Move To Subscription Licensing Model

• Discussing FY2020 results and weaker-than-expected Q1 and FY2021 guidance on a surprise move to a subscription licensing model.
• On the conference call, management did a poor job explaining the impact of the transition thus causing shares to crater by almost 20% over the course of Friday's session.
• The company remains in the right space at the right time but new sales leadership will have to successfully execute the transition.
• Get long the shares with a short-term price target of $20 as the company remains inexpensive relative to peers and FY2021 guidance appears manageable.
• Better-than-expected customer adoption of the new subscription model could easily result in shares doubling from current levels.

For further details see: