Nimble Storage (NMBL): Solid Beat On All Flash Array Contribution - RBC
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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.
Shares of Nimble Storage closed at $8.82 yesterday.
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