January 13, 2014
Small-Cap Watch: Nimble Storage (NMBL) in Hyper Growth Phase
Pacific Crest’s upgrade earlier today of Nimble Storage (NMBL, $41.01), a provider
of a flash-optimized hybrid storage platform, to ‘Outperform’ with a price target of
$46 is sending the shares up more than 7%.
The firm says positive meetings with resellers have confirmed its view that the
company’s hyper growth is sustainable.
For fiscal 2014 (Jan.), the consensus revenue estimate of $121.9 million indicates
growth of 126%, while the fiscal 2015 consensus of $190.4 million indicates growth
of 56%. The high revenue estimate on Wall Street for next year is $213.9 million.
Nimble operates in an addressable market (enterprise storage systems and
software) that’s estimated to reach nearly $36 billion in 2017 from roughly $29.8
billion this year.
Nimble’s platform, built on proprietary software, leverages the strengths of both
flash and disks to provide increased performance and better data protection in a
Pacific Crest believes Nimble warrants a premium valuation because its growth rate
exceeds that of other momentum names, such as Workday (WDAY), Splunk (SPLK)
and Tableau (DATA).
Nimble went public in December at $21 a share and opened for trading at $31.10.
The post-IPO high of $47.85 was reached on January 2.
For our full report on Nimble and its growth outlook, check out the January 2014
issue of Tech-Stock Prospector.
Download the January 2014 issue of Tech-Stock Prospector to your Amazon
Kindle or Kindle for iPad/iPhone reading app here:
Here are some of the topics covered in the January 2014 issue:
*Top potential takeover targets in tech for 2014
*An update on the continued land grab in marketing automation
*How FireEye could spur more cybersecurity M&A
*Might Cisco Systems make a sizable acquisition to help jumpstart growth?
*A small-cap name that’s big in enterprise vulnerability management
*Proofpoint builds its targeted attack prevention business
*New growth drivers for ServiceNow in cloud-based IT management
*Digital-advertising play: Marin Software
*Cornerstone OnDemand stays competitive in talent management
*Qlik Technologies is ready to ride the data visualization wave
*Aruba Networks looks well positioned for the WiFi upgrade cycle
*Adobe Systems continues its move to the cloud
*Behind the big sales force reorganization at Symantec
*Demandware brings the cloud to digital commerce
*Why some savvy money managers like SolarWinds
*Nimble Storage is ready to take on the big legacy vendors
*Wall Street analysts keep boosting their Yahoo price targets
*Is Fortinet primed to execute again after naming a new CFO?
*Deal Report: RetailMeNot sees growth in digital coupons
Order the January 2014 issue of TSP here:
Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20
years of experience covering the tech sector. He is a former senior writer with
Louis Rukeyser’s Wall Street.
TechStockProspector.com, launched in 2003, is an investment-research service
focused primarily on the networking, storage, security, wireless and software
sectors. Annual subscription: $350.
For more information or to place an order, call 800-392-0998.