Sumo Logic is a cloud-based machine data analytics company focusing on security, operations, and BI usecases in real time. Its shares are traded 80% off its all-time highs. The service provides useful information on how to improve network efficiency and discover any anomalies that may have an intruder behind them. The company only charges for capacities that are actually used by the client and allows users to grow increasing profit for Sumo Logic. Such a revenue model with ongoing profit is in high demand at Wall Street.

Big data processing will only expand in time and the market of such services is estimated by Sumo Logic at $55 billion. The company itself only occupies 1% of it. The company’s new management promised to increase brand awareness and enlarge its sales personnel.

Sumo Logic has $350 million in cash on its balance sheet that could be used for development. SUMO market cap is around $900 million, which is quite attractive for investors considering the company’s financials. EV/S (Enterprise value to sales) is only at 2, which is also quite an attractive ratio.

Target price for SUMO stocks in the mid-term is at $14.