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William Blair Upgrades Nimble Storage (NMBL) to Outperform

May 12, 2014 6:30 AM EDT
Get Alerts NMBL Hot Sheet
Price: $12.49 --0%

Rating Summary:
    3 Buy, 23 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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William Blair upgraded Nimble Storage (NYSE: NMBL) from Market Perform to Outperform on valuation and market expansion opportunities.

Analyst Jason Ader cited, ".. more attractive valuation level, the anticipated addition of Fibre Channel support in 2014, and the general availability of its new scale-out software, the latter two of which should expand the company's addressable market beyond the midrange and enable it to continue taking share from vulnerable incumbents."

Ader notes that that shortly following the company's IPO in December 2013, Nimble was trading at 19 times their forward revenue estimate, well above recent takeout multiples of storage companies boasting disruptive innovations. Since then, shares have come down to earth and now trade at 5.3 times their calendar 2015 sales estimate, "an attractive entry point leaving room for both multiple expansion (we note that recent takeouts in the storage space have been in the range of 5 to 10 times forward revenue), and upside to what we believe are conservative Street estimates."

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 $20.59 yesterday.



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