Software stock Alteryx could see big gains thanks to burgeoning artificial intelligence demand, according to Bank of America. The bank upgraded shares of Alteryx to buy from neutral Thursday and raised its price target to $70 from $60. The new target implies upside of 80% from Wednesday’s close. Shares have lost 23.2% from the start of 2023. The company focuses on data analytics for employers, and BofA sees promise in the company’s cloud segment and potential for artificial intelligence application through its generative AI product. AYX YTD mountain Shares of Alteryx are down more than 23% from the start of the year. “We were impressed with the product demos at Inspire and believe that AiDIN increases the value proposition and should be a catalyst to drive accelerating adoption of Analytics Cloud and Designer/Server as organizations consume more of Alteryx’s products for data prep and analytics to drive business insight,” BofA analyst Koji Ikeda said. Koji added that Alteryx could be able to consolidate the overall analytics market thanks to accessibility and easy functionality of its products as well as a lead in customers that have already installed its software. ‘We believe that over the long-term, the business will continue to grow at an above software industry rate (ARR) and execute its transition to an enterprise analytics platform that includes cloud and on-premise options,” Koji said. — CNBC’s Michael Bloom contributed to this report.
