Nimble Storage's (NMBL) Key Metrics Continue Trending in Right Direction - Needham & Company
Needham & Company affirms its Buy rating and $32 price target on Nimble Storage (NYSE: NMBL) following the company's Q2 results and outlook issued Tuesday night.
Analyst Richard Kugele offered the following commentary: Another solid quarter of execution from NMBL, with all the important metrics (customer acquisition, revenue growth, percentage of larger deals, FC mix, GM and cash flow) trending in the right direction. We would add that by now, we hope that investors are fully aware that F17 could see higher levels of investment to drive top line growth (and therefore lower EPS than consensus). With that in mind, we reiterate our Buy rating and $32 target based on 5x EV/C16E sales.
For a storage company to beat both top and bottom line estimates in the current environment seems to us to be impressive. To do so with record margins, consistent customer acquisition and revenue growth, an increasing number of FC and larger deals, and drive meaningful cash flow is exceptional. While the storage aristocracy aggressively prices to keep competitive in deals, NMBL marches along with solid growth. We reiterate our Buy,
Kugele concluded.
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