Please ensure Javascript is enabled for purposes of website accessibility

Why Talend Stock Rallied Today

By Evan Niu, CFA - Feb 2, 2021 at 4:44PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Craig-Hallum initiated coverage of the data integration specialist with a buy rating.

What happened

Shares of Talend (TLND) rallied today, closing out the day with gains of 11% after getting a bullish initiation from Wall Street. Craig-Hallum kicked off coverage of Talend with a buy rating alongside a price target of $55.

So what

Analyst Chad Bennett argues that Talend will benefit from the secular trends toward digital transformation and cloud migration as enterprise organizations continue to modernize operations. The tech company provides data integration services for a variety of sectors through its software platform. Companies need to connect numerous fragmented data sources with data stores, and Talend is an established leader in that market, according to Bennett. Craig-Hallum estimates that the combined market opportunity in 2020 is approximately $23 billion.

Green stock chart going up

Image source: Getty Images.

Additionally, Bennett likes the new management team. In January 2020, Talend shook up its leadership, with Mike Tuchen stepping down and being replaced by a trio of experienced enterprise software veterans. Christal Bemont became CEO, Ann-Christel Graham was appointed chief revenue officer, and Jamie Kiser was named chief customer officer and COO.

Now what

Craig-Hallum believes that Talend's cloud business can accelerate annual recurring revenue growth in the second half of 2021 from the mid-teens to approach 20%. The company will also enjoy favorable billings comparisons in the first half of the year, according to the analyst.

Talend is scheduled to report fourth-quarter results on Feb. 10, and the company's guidance calls for revenue of $74.2 million to $75.2 million. That should result in an adjusted net loss per share of $0.29 to $0.32.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Talend Stock Quote
Talend
TLND

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.