Needham & Company Raises Price Target on Ellie Mae (ELLI) Following EPS Beat

Needham & Company reiterated a Buy rating on Ellie Mae (NYSE: ELLI), and raised the price target to $88.00 (from $85.00), following the company's 3Q earnings results. Ellie Mae reported 3Q revenue of $68.9 million, above consensus of $62.6 million. EPS of $0.45 beat consensus of $0.35.

Analyst Mayank Tandon commented, "Last night, Ellie Mae reported another outstanding quarter, and raised FY15 guidance in excess of the strong 3Q beat. ELLI continues to consistently outperform expectations, and we believe that all major tailwinds (improving mortgage volumes compared to a year ago, changing regulations, automation of the loan origination process) remain in place. We also believe that the aggressive enterprise sales push, combined with pricing leverage as the product platform expands, sets ELLI up for robust multi-year growth. We are raising our FY15 and FY16 estimates, and we are reiterating our BUY rating. Our price target is raised to $88, which is roughly 8x our EV/FY15 revenue estimate, and in-line with ELLI's highgrowth vertical-based SaaS peers."

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 $73.15 yesterday.

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