By Kim Khan
Investing.com – Office communications software company Slack got some good news from Wall Street Tuesday and shares jumped accordingly.
Slack Technologies (NYSE:WORK) was up 11% in afternoon trading.
RBC Capital Markets initiated coverage of the stock with an outperform rating and a price target of $25.
“In a time where data is abundant but attention is scarce, modern workers increasingly turn to messaging and conversational interfaces as they seek lower-friction, real-time, automated experiences that deliver results,” RBC analyst Alex Zukin wrote in an note, according to Briefing.com.
While the simplistic take on Slack is that it is ‘just another workplace chat tool,’ we believe that the vision around becoming the primary system of engagement for all employees inside (and increasingly outside) an organization creates a positive data feedback loop (more engagement - more data - more insights to drive better results - more engagement) and significant long-term value," Zukin said.
Before today’s pop, shares were down nearly 11%.
Among the 20 analysts covering Slack, 10 have buy ratings, 2 have sell ratings and 8 are neutral, according to Investing.com.
The average price target is about $27.40.