Analysts have increased their price target for Commvault Systems by approximately $6.47 to $214.56 per share. They cite stronger revenue growth, expanding profit margins, and continued confidence in the company's robust market momentum and execution.
Analyst Commentary
Bullish Takeaways- Bullish analysts highlight Commvault's strong quarterly results, noting that the company exceeded estimates and provided an upbeat full-year outlook.
- Improving industry trends and Commvault's solid operational execution are seen as factors driving recent price target increases and reinforcing confidence in the company's valuation.
- Analysts point to accelerating momentum in the backup and recovery market, as well as Commvault's strengthened positioning in cybersecurity, as key growth drivers supporting higher price expectations.
- Expanding profit margins and consistent revenue growth are viewed as contributing to an overall positive outlook. This has resulted in upward price target revisions by several research firms.
- Some cautious analysts continue to maintain neutral ratings, suggesting that while recent results are positive, a notable portion of Commvault's prospects may already be priced into shares.
- There is a measured approach regarding valuation with concerns that any deceleration in industry trends or a shift in market momentum could temper further upside.
- Cautious views are also tied to the sustainability of recent margin expansion, emphasizing the importance of maintaining strong execution to meet elevated expectations.
What's in the News
- Commvault launched Clumio for Apache Iceberg on AWS, delivering the industry's first Iceberg-aware, air-gapped cyber resilience solution. This enables faster recovery of critical AI and analytics workloads. (Key Developments)
- Announced a strategic integration of Commvault Cloud with BeyondTrust Password Safe to improve privileged access management and enhance data recovery efficiency for customers. (Key Developments)
- Expanded its HyperScale portfolio with new HyperScale Edge and HyperScale Flex solutions to address rising cyberattacks on edge devices and meet the performance demands of modern enterprises. (Key Developments)
- Provided new earnings guidance for the second quarter and full fiscal year 2026, projecting total revenues between $272 million and $274 million for Q2, and $1,161 million to $1,165 million for the full year. (Key Developments)
- BofA Securities, MUFG Securities Americas, Morgan Stanley, and Mizuho Securities USA have all been added as Co-Lead Underwriters for Commvault's $785 million Fixed-Income Offering. (Key Developments)
Valuation Changes
- Fair Value: Increased from $208.09 to $214.56 per share, reflecting modest upward revisions based on recent performance and outlook.
- Discount Rate: Increased slightly from 8.40% to 8.41%, indicating a marginally higher risk premium applied by analysts.
- Revenue Growth: Projected growth rose slightly from 12.25% to 12.34%, indicating incremental optimism in future sales expansion.
- Net Profit Margin: Improved from 11.62% to 13.34%, suggesting expectations for stronger profitability in the future.
- Future P/E: Decreased from 70.43x to 63.14x, indicating anticipated improvements in earnings and a potentially more attractive valuation.
Disclaimer
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