Slack (WORK,$33.82) shares downgraded by Goldman Sachs analyst, on concerns over competition from Microsoft(MSFT, $197.37)
On Friday, shares of Slack Technologies were downgraded by Goldman Sachs analyst Heather Bellini, on competition concerns.
Bellini lowered rating on the software company’s stock to sell from neutral, citing competition from Microsoft. While Bellini views Slack as a “best-in-class team messaging offering that is favored by the technical community”, she expects Microsoft Teams to continue to try and leverage its packaging within Office 365 to drive increased adoption, thus creating the potential for a more competitive environment – something that the analyst thinks might hurt Slack’s long-term growth rate.
According to Bellini , there is also "elevated risk" of customer churn, due to Slack’s "significant" exposure to small- and medium-sized businesses and its exposure to industries directly affected by the coronavirus pandemic.
The analyst maintained her share-price target at $30.
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
MSFT's Valuation (13) in the Packaged Software industry is significantly better than the same rating for WORK (85) in the industry. This means that MSFT’s stock grew significantly faster than WORK’s over the last 12 months.
MSFT's Profit vs Risk Rating (3) in the Packaged Software industry is significantly better than the same rating for WORK (100) in the industry. This means that MSFT’s stock grew significantly faster than WORK’s over the last 12 months.
MSFT's SMR Rating (14) in the Packaged Software industry is significantly better than the same rating for WORK (100) in the industry. This means that MSFT’s stock grew significantly faster than WORK’s over the last 12 months.
MSFT's Price Growth Rating (13) in the Packaged Software industry is in the same range as WORK (40) in the industry. This means that MSFT’s stock grew similarly to WORK’s over the last 12 months.
MSFT's P/E Growth Rating (38) in the Packaged Software industry is somewhat better than the same rating for WORK (100) in the industry. This means that MSFT’s stock grew somewhat faster than WORK’s over the last 12 months.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
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