Needham & Company Rates Ellie Mae (ELLI) at Buy in Transitioned Coverage

Needham & Company transitions coverage on Ellie Mae (NYSE: ELLI) with a Buy rating and a price target of $47.00.

Analyst Mayank Tandon said, "We believe ELLI's recent strong 3Q results and upbeat revenue guidance for FY15 of 25%+ growth underscore the strong demand from mortgage lenders to automate and streamline the mortgage loan origination process to reduce costs, manage risk, and comply with changing regulations. We believe the market opportunity is large with high barriers to entry, positioning ELLI for robust multi-year revenue growth as it penetrates the market with its flagship Encompass SaaS platform. While we are establishing our estimates in line with guidance and consensus, we believe there could be upside to results if mortgage volumes improve after two years of decline."

For an analyst ratings summary and ratings history on Ellie Mae click here. For more ratings news on Ellie Mae click here.

Shares of Ellie Mae closed at $40.86 yesterday.

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