Nimble Storage (NMBL): Solid Beat On All Flash Array Contribution - RBC
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Target (TGT) PT, Estimates Cut at Buckingham Research Following Miss
- Jefferies Raises Price Target on Symantec (SYMC) to $27; Reiterates Hold
- BMO Capital Raises Price Target on IHS Markit (INFO) Following 4Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesRBC Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!