Alteryx Will Gain From Democratization Of Data and Self-Service Analytics, Analyst Says While Bumping Up Price Target By 18%

Needham analyst Mike Cikos reiterated a Buy and bumped the price target on Alteryx, Inc AYX to $80 from $68.
Alteryx stood out as one of the few companies in his coverage that sustained its growth through 2Q22, unaffected by the weakening economy.
He recently spoke with the company to understand the drivers for its 2Q strength and the different elements investors are considering for CY23 ARR and Revenue growth.
When considering CY23, he believes Alteryx’s NRR of ~120% over the last six quarters presents a baseline growth rate. Investors can layer in additional vectors such as improved execution and go-to-market, more robust Cloud capabilities, a building and more frequent Renewal cycle, and ELA tailwinds.
He believes the self-service tools provided by Alteryx provide a pivotal function in the Big Data software stack, bridging the gap between end-users, analytics, and the underlying infrastructure.
Alteryx is levered to the growing democratization of data, and self-service analytics, which he believes represents a significant, un-penetrated TAM.
As data proliferates, enterprises are storing and analyzing more significant amounts to drive their decision-making processes which should provide a secular demand driver to Alteryx.
Price Action: AYX shares traded lower by 4.04% at $66.56 on the last check Tuesday.