Roth Capital Reiterates Buy on Ellie Mae (ELLI) Following 3Q Results
Roth Capital reiterated a Buy rating on Ellie Mae (NYSE: ELLI), and raised the price target to $95.00 (from $87.00), following the company's 3Q earnings results. ELLI's growth drivers remain robust, with Encompass user growth and ARPU strong highlights.
Analyst Richard Baldry commented, "ELLI's strong degree of upside across revenue and earnings metrics in 1Q15, 2Q15, and again now in 3Q15, has more than doubled run-rate revenues in the past eighteen months. We continue to see ELLI's highly accelerated organic growth (3Q15 revenues grew 61% yr/yr) and sector-leading profitability (3Q15 adjusted EBITDA margin was 29.5%) warranting a valuation at the upper-end of the SaaS leader group. As such, we are (again) increasing our target price to $95.00 and reiterate our Buy rating."
Shares of Ellie Mae closed at $73.15 yesterday.