Stifel Sees Nimble Storage (NMBL) Meeting Q1 Expectations; Would Like to See Larger Deal Sizes Moving Forward

Stifel is out with a preview of Nimble Storage's (NYSE: NMBL) Q1 reprot, which is expected out Tuesday after markets close.

Analyst Aaron C. Rakers sees NMBL posting Q116 loss of $0.13 per share with revenue of $69.8 million, compared with consensus estimates calling for a loss of $0.13 per share and revenue of $69.6 million.

Rakers summarized: While we remain positive on Nimble’s competitive positioning/differentiation, which we view as continually underappreciated, our checks leave us to expect another quarter of results similar to the past few quarters – ~2 - 3 percent upside to our $69.8M estimate (guide: $68 - $70M). We continue to focus on Nimble’s ability to drive revenue growth/acceleration through larger deal sizes (F1Q16 = 2nd full quarter of FC availability) and increased wallet share w/ existing customers by addressing incrementally new workloads with its Adaptive Flash Platform and support for all-Flash shelves. Nimble continues to have a sub-1 percent shares in the +$20B/annum storage market. We would highlight short interest – 8.21M shares, or ~20.3 percent of institutional ownership.

Stifel has NMBL at Buy with a price target of $40.

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

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