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Needham & Company Reiterates a 'Buy' on SolarWinds (SWI); Raises PT & FY12 Estimates

February 8, 2012 8:31 AM EST
SWI Hot Sheet
Rating Summary:
    7 Buy, 6 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Needham & Company reiterates a 'Buy' on SolarWinds (NYSE: SWI) price target raised from $36 to $44.

Analyst, Scott Zeller, said, "The DecQ performance for Solarwinds was strong, beating on revenue and EPS, and showed balanced performance – geographies, commercial vs. federal, and revenue mix were all strong for DecQ, y/y. We continue to believe SWI is benefiting from its position as a “high-value for price” choice in systems and infrastructure management, as both large companies and SMB companies are attracted to SWI’s “value for the money” in the current questionable economy. The operating model for SWI continues to look strong, as operating margins for CY11 averaged 52%, despite SWI having performed 4 acquisitions during the last 12 months and investing in localization efforts (Eur, Asia)."

Needham raises FY12 from $1.13 to $1.15, introduces FY13 at $1.41.

For an analyst ratings summary and ratings history on SolarWinds click here. For more ratings news on SolarWinds click here.

Shares of SolarWinds closed at $36.36 yesterday, with a 52 week range of $18.82-$37.37.


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