Slack Technologies Downgraded To Sell From Neutral At Goldman Sachs
Goldman Sachs analyst Heather Bellini downgraded Slack Technologies (WORK) to Sell from Neutral with an unchanged price target of $30. The stock closed Thursday up $1.82 to $34.22.
Although Slack has been a near-term beneficiary of the work from home environment, a key investor focus from here will be the company's "enduring battle" with Microsoft Teams (MSFT) over market share, Bellini tells investors in a research note.
Slack has a "best-in-class" team messaging offering that is favored by the technical community, but Microsoft Teams will continue to try and leverage its packaging within Office 365 to drive increased adoption, thus creating the potential for a more competitive environment, says the analyst. Bellini sees risk of elevated risk of churn over the next 12 months for Slack as Teams given the uncertain competitive landscape.
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