Anaplan Has The Ingredients For 'The Next Execution Story In Software,' Says Bullish Rosenblatt

The cloud-based planning software provider Anaplan Inc's PLAN near-term as well as long-term growth prospects are encouraging, according to Rosenblatt Securities.

The Analyst

Yun Kim has a Buy rating on Anaplan with a $71 price target.

Anaplan's 'Enterprise-Ready' Sales Organization 

Anaplan is seeing strong business momentum, Kim said in a Friday note, citing Rosenblatt's recent checks with global system integrators, or GSIs. (See his track record here.) 

The GSIs are increasing their investments into their Anaplan practices and intend to increase the number of trained Anaplan consultants meaningfully for next year, the analyst said. 

"We believe GSIs' continued investment into their PLAN practice reflects the increasingly strategic nature of their partnership with PLAN." 

Large GSIs are actively selling Anaplan's highly quantifiable ROI solution along with large digital transformation projects, Kim said. 

Much of the incremental traction with GSIs will likely lead to accelerated billings growth next year, especially in the Americas, the analyst said. 

With the recent hiring of Mark Anderson, a respectable sales executive in the industry, Anaplan is building one of the "best enterprise-ready" sales organization in the industry, according to Rosenblatt. 

Anaplan's "connected planning" solution is quickly becoming the next killer app in the software industry, as evidenced by a 40% billings growth rate that continues to accelerate and the $250,000-plus in annual recurring revenue generated by 25% of its customers, Kim said. 

"We believe PLAN has all the right ingredients to be the next execution story in software." 

Anaplan Price Action

Anaplan shares have nearly doubled year-to-date. The stock was trading down 0.8% at $52.21 at the time of publication. 

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