Pick Qlik (QLIK) Says UBS (UBS)

UGS (NYSE:UBS) recommends Qlik Technologies (Nasdaq:QLIK) as a "Buy," saying the company is an "emerging business intelligence vendor disrupting the traditional BI landscape with an easy to use, yet powerful data analysis tool."

UBS thinks this company could ultimately capture more revenues in the business intelligence market than there currently are in said market. Quite literally, UBS expects Qlik's business to outgrow the $9.2 billion currently being spent on competing products. For a company that last year pulled in $226 million in total revenue, that's a bold statement. But what are the chances UBS is right?

Qlik at your own risk

At first glance, I'd have to say those chances are not good. I mean, just look at the valuation on this stock! Eighty times last year's free cash flow and 110 times reported GAAP earnings. Even if Qlik manages to hit the 25% long-term annual growth target Wall Street has set for it, those are some pretty big numbers, and Qlik is a pretty expensive stock.

This is not some punter of a stock analyst we're talking about here, recommending that you buy Qlik Technologies - this is UBS.

Qlik Technologies closed Monday at $23.61, down $0.35, or 1.46 percent.




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