Commvault Systems (CVLT) Receives Outperform Rating and $200 Price Target from Oppenheimer
In a bullish move, Oppenheimer analyst Param Singh has initiated coverage on Commvault Systems (CVLT) with an Outperform rating and a price forecast of $200. This optimistic outlook stems from Singh’s belief that Commvault is strategically positioned to benefit from the burgeoning demand for data backup and recovery solutions.
Singh argues that the increasing importance of data, coupled with the rising prevalence of data security breaches and ransomware attacks, is creating a robust growth environment for the backup storage market. Commvault, as a leading provider of Backup-as-a-Service (BaaS) and Disaster Recovery-as-a-Service (DRaaS), is well-equipped to capitalize on this trend.
Further bolstering the analyst’s bullish stance is the growing shift towards as-a-service platforms. Commvault’s focus on SaaS delivery positions it advantageously to benefit from this industry shift. Singh projects that these factors will drive strong customer growth, market share gains, and a substantial 35% – 40% increase in SaaS Annual Recurring Revenue (ARR) for Commvault over the next three years.
Singh highlights Commvault’s ability to adapt its offerings to cater to hybrid cloud and SaaS workloads, further cementing its position in the evolving data landscape. This growth is expected to come at the expense of legacy competitors like Dell Technologies, IBM, and Veritas.
Gartner, a respected industry analyst firm, has also recognized Commvault’s capabilities, specifically commending its as-a-service cloud offerings for effectively addressing hybrid cloud and SaaS workloads, deeming its product best-in-class.
Based on his analysis, Singh forecasts Commvault to report FY25 revenue of $957 million and pro forma EPS of $3.47.
Following this positive analyst note, CVLT shares experienced a 3.58% surge, trading at $175.75 at the close of trading on Wednesday. This optimistic sentiment reflects the market’s confidence in Commvault’s growth potential as it navigates the evolving data landscape.