MUFG Wouldn't Be Surprised If Qlik Sale Rumor Is True

• Shares of Qlik Technologies Inc (NASDAQ: QLIK) spiked higher by more than 8 percent following unconfirmed M&A chatter.
• Stephen Bersey of MUFG commented in a note that market chatter of a potential sale is likely to be "accurate."
• The analyst maintained an Outperform rating on shares of Qlik with a price target raised to $34 from a previous $24.

Shares of Qlik Technologies Inc (NASDAQ: QLIK) were trading higher by more than 8 percent on Monday following news reports that the company has hired bankers to explore a potential sale of itself.

According to Stephen Bersey of MUFG, Qlik Technologies' stock will "outperform with or without a sale." The analyst maintained a an Overweight rating on the stock with a price target boosted to $34 from a previous $24.

According to Bersey, Qlik's technology could "increase its attractiveness" to large legacy vendors, including SAP, Oracle and IBM. The analyst added that the company also has the potential to achieve above-peer top and bottom-line growth for several years given its new Qlik Sense product release.

Bersey continued that while the market chatter of a potential acquisition has yet to be confirmed to be accurate, a potential transaction "would make sense" and the market is "showing signs of agreeing." The analyst also added that a major shareholder and activist investor, Elliot Management, adds credibility to the story and "we would not be surprised of the story were accurate."

"Although Qlik could draw interest from a host of buyers, we believe that the stock is undervalued on a stand-alone basis, and we recommend building or adding to positions," the analyst concluded.