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".

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Shares of Mimecast Limited closed at $42.82 yesterday.