Tufin Software Tech. Ltd. diskutieren
Tufin Software Tech. Ltd.
WKN: A2PGZN / Name: Tufin Software Tech. Ltd. / Aktie / ? /
12,80 €
0,79 %
Buy mit Kursziel 15,0
Sell Tufin Software Tech. Ltd.
Buy mit Kursziel 18,0
Tufin Software: Buy The Sell-Off After Surprise Move To Subscription Licensing Model
Summary
- 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.
[...]
Bottom Line
Tufin Software remains in the right place at the right time but new sales leadership will have to successfully navigate both the ongoing impact of COVID-19 and the upcoming transition of the business model.
Clearly, market participants were expecting more after the upside pre-announcement in January with many investors heading for the exits on Friday with the shares finishing the session down 18.5%.
That said, many of them likely did not consider the impact of the upcoming transition to subscription and management's unwillingness to get ahead of themselves in terms of guidance after a couple of uneven quarters.
Going forward, the company needs to do a better job updating investors and analysts on the progress of the transition by adding some much-needed granularity.
Relative to peers, Tufin remains dirt cheap with the company trading at less than 5x expected FY2021 revenues, particularly with the business model now transitioning to subscription.
Investors should consider buying the selloff with Q1 guidance appearing very manageable and analysts likely to remain accommodative.
Should the company see better-than-expected customer adoption of the new subscription model, the stock could easily double from current levels over the course of this year.
Get long the shares with a short-term price target of $20.
I will update investors on the company's progress after the Q1 report in May.
Henrik Alex: https://seekingalpha.com/article/4406176-tufin-software-buy-pullback-after-surprise-subscription-licensing-model
Henrik Alex: https://seekingalpha.com/article/4406176-tufin-software-buy-pullback-after-surprise-subscription-licensing-model
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