Mimecast Limited (MIME) PT Rises To $55 At Jefferies In A Tough Comp Quarter

Jefferies analyst, John DiFucci, reiterated his Buy rating on shares of Mimecast Limited (NASDAQ: MIME) and raised his price target to $55 from $50 after revenues of $87.6M exceeded consensus of $84.8M in outgoing CFO, Peter Campbell's, last quarterly call. Revenue growth accelerated and guidance for F4Q and F20 was above the Street. EPS of $0.09 was also better than expectations of $0.06. The one thing that may stick out as a drawback was New Subscription ACV growth of 16% yoy. This represents a deceleration the estimated 30% in the prior quarter, but it was also compared against a very difficult comp of 46% in F3Q18.

The analyst stated "management noted strength in larger accounts in the quarter, as enterprises with leaner IT Security organizations are more willing to deploy a contiguous platform of solutions representing best practices through a leading experienced provider such as Mimecast. At the same time, Mimecast does allow configurability and APIs to integrate closely with its technology".

For an analyst ratings summary and ratings history on Mimecast Limited click here. For more ratings news on Mimecast Limited click here.

Shares of Mimecast Limited closed at $42.82 yesterday.

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