While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.
What: Shares of Tableau Software (NYSE:DATA) climbed 1% this morning after Goldman Sachs upgraded the business analytics software company from neutral to buy.
So what: Along with the upgrade, analyst Greg Dunham boosted his price target to $92 (from $77), representing about 22% worth of upside to yesterday's close. While contrarians might be turned off by Tableau's strong share price appreciation in recent weeks, Dunham believes there's plenty of room to run given his view of accelerated contract wins going forward.
Now what: According to Goldman, Tableau's risk/reward trade-off is particularly attractive at this point. "We expect DATA shares to outperform our broader coverage group as we believe growth will remain more elevated than consensus estimates for the coming quarters," noted Dunham. "Investor sentiment around growth sustainability and competitive differentiation should be further strengthened by the company's ability to land customers, leverage its hybrid data architecture to new Big Data platforms, and win an increasing number of larger deals." With the stock up about 75% from its 52-week lows and trading at a lofty price-to-sales of 23, however, conservative Fools might want to wait for a wider margin of safety before betting on it.
More reliable ways to build wealth
One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.
Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.