Deutsche Bank Likes Cloudera Ahead Of Its First Earnings Report

Cloudera Inc (NYSE: CLDR)'s April initial public offering has come and gone, which implies the focus is now on the company's first-ever earnings report as a public company on June 8. Analysts at Deutsche Bank initiated coverage of Cloudera's stock with a Buy rating and $25 price target.

According to Deutsche Bank's Karl Keirstead, Cloudera is a market leader in the data management platform for storing, processing and analyzing data. Moreover, the next-generation and Hadoop-based data management platform differentiates the company from its peers. In fact, the company continues to heavily invest in its platform and expanding its sales time, which is expected to result in a conservative 32 percent revenue growth rate in fiscal 2018.

Keirstead said Cloudera has even posted a net expansion rate of above 140 percent, which is higher than its closest peers including Hortonworks and Talend at 120 to 125 percent each.

"Given our view that Cloudera has emerged as the leader in its category, we believe that the stock is more likely to work (or not) based on the slope of the adoption curve for Hadoop-based data management technology," the analyst wrote.

Finally, the analyst noted Cloudera's per-node pricing doesn't appear to be under any pressure and the benefits of the company's sales revamp and capacity build-out has "probably not shown up in the numbers yet."

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