Nimble Storage (NMBL): Solid Beat On All Flash Array Contribution - RBC

August 24, 2016 6:46 AM EDT
Get Alerts NMBL Hot Sheet
Price: $8.57 +1.78%

Rating Summary:
    13 Buy, 14 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 20 | New: 54
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RBC Capital analyst, Amit Daryanani, reiterated his Sector Perform rating on Nimble Storage (NYSE: NMBL) after the company delivered a solid Jul-qtr beat and guided Oct-qtr revenue above Street at the midpoint of guidance ($100–103M vs. $100.8M). The EPS guide of -$0.19 to -$0.17 was slightly below Street at the midpoint most likely due to elevated investment activity.

Key points include: 1) Strong all-flash momentum: the July quarter marked the first full quarter of NMBL's all flash array availability; the product line drove 17% of total product bookings vs. 9% in Apr-qtr with ~2x the ASP of hybrid. 2) Reacceleration in y/y revenue growth: guidance implies ~26% y/y revenue growth at the midpoint, which is an improvement from FH1:17 y/y levels ~21% and reflects productivity from earlier investment activity, 3) Bookings strength from Cloud Service Provider and enterprise, which grew 69% and 37%, respectively.

The price target increases to $10.00 from $8.00 on ~1.5x EV/NTM revenue, which is in line with IT Hardware peer group multiples.

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

Shares of Nimble Storage closed at $8.82 yesterday.

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