Is Qlik Technologies, Inc. Stock Headed to $50?

With Qlik Technologies ' shares falling from above $40 to around $38 during the recent market sell-off, it's a good time to look at the stock. One analyst has pegged a $50 12-month price target to the stock (via Barron's and Benzinga ). Up about 32% from where shares are trading at the time of this writing, this outlook for the stock could suggest a pullback is providing a valuable buying opportunity. Is there any substance to this price target?

Qlik Sense focuses on self-service and visualization. Image source: Qlik Technologies.

Keirstead said management "sounded positive about Sense traction."

Investors shouldn't underestimate the potential of Qlik Sense as a catalyst for the company. Instead of serving as a substitute for QlikView, the product is both comprehensive in its own right and value-adding. In other words, Qlik Sense may appeal to existing customers already using QlikView and also to first-time Qlik customers. Essentially, Qlik Sense has broadened the appeal and attractiveness of Qlik's BI solutions.

QlikView is still performing strongly

Some Qlik investors may have been concerned about demand for the company's primary revenue driver, QlikView. With QlikView 12 due in the second half of the year, it stands to reason there could be some potential customers waiting to sign any agreement until the newer version is released.

However, if there are any customers waiting for QlikView 12, it's looking like higher demand is offsetting any negative effects, according to Keirstead.

Management was "adamant that any demand 'air pocket' ahead of the launch of QlikView 12 in late 2015 is highly unlikely," Keirstead said. Of course, this shouldn't be a surprise to Qlik investors. Management said in the company's second-quarter earnings release there was "ongoing healthy demand for QlikView."

Keirstead's reasons to be bullish on Qlik Technologies at these levels make sense. The recent pullback in shares doesn't reflect any lack in execution or weakness in the underlying business. As demand for the company's core QlikView product and its newer Qlik Sense platform continues to be robust, Qlik shareholders have good reason to continue holding. And the pullback is significant enough that it may even be a good time to start a position in the stock.

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The article Is Qlik Technologies, Inc. Stock Headed to $50? originally appeared on Fool.com.

Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Qlik Technologies. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.