Needham & Company Reiterates Buy Rating on Ellie Mae (ELLI) Post Q4
Needham & Company analyst Mayank Tandon reiterates Buy rating and $135 price target on Ellie Mae Inc. (NYSE: ELLI), noting secular drivers plus market leadership powered strong 2016 fourth quarter growth and margins.
Tandon comments, "ELLI reported another strong quarter, beating 4Q estimates comfortably to finish FY16 on a robust note. ELLI introduced FY17 guidance that is largely consistent with consensus, reflecting strong bookings trends despite industry forecasts of a sharp decline in origination volumes amidst rising rates. We believe ELLI's consistent outperformance of expectations is fueled by growth drivers such as compliance resulting from changing regulations, automation of the loan origination process, and success in penetrating the enterprise market. We are adjusting our FY17 estimates to the high-end of the guidance range and also introducing our FY18 estimates. We are reiterating our high-conviction BUY rating and $135 target as we see potential for upside results and multiple expansion."
Shares of Ellie Mae closed at $90.18 yesterday.