Macquarie Sees Qlik Technologies As The Top Mid Cap Pick In Enterprise Software Group

Qlik Technologies Inc (NASDAQ: QLIK) shares have been trending lower in 2016 and are down 11 percent year-to-date. Macquarie’s Sarah Hindlian initiated coverage of Qlik Technologies with an Outperform rating and a price target of $38.

Analyst Sarah Hindlian said that Qlik Technologies offers the broadest set of enterprise grade BI tools for IT and business users. Qlik Technologies’ offers superior data governance functionality that provides businesses control over who can access their data, besides controlling usage.

Growth Drivers

The company’s large installed base of enterprise customers represents “prime up-sell candidates” for its new Qlik Sense visualization tool and analytics platform products.

“We view Qlik’s free downloadable version of Qlik Sense as a disruptive force in the BI marketplace impacting other vendors,” Hindlian wrote. She added that the $20/month Qlik Sense Cloud product can compete directly with the existing low cost BI products offered by Amazon.com, Inc. (NASDAQ: AMZN) and Microsoft Corporation (NASDAQ: MSFT).

The company’s FY16 performance is expected to be driven by new products, new custom or analytics platform, improving forex headwinds and reasonable valuation, Hindlian stated.