How Commvault’s (CVLT) Integration of Privileged Access Management Could Shape Its Cybersecurity Story

• BeyondTrust recently announced a collaboration with Commvault to integrate the Commvault Cloud cyber resilience platform with BeyondTrust Password Safe on the Pathfinder Platform, aiming to help organizations better mitigate risk, secure privileged access, and enhance data recovery in response to growing cyber threats.
• An important takeaway is the emphasis on securing both human and machine identities, signaling a shift toward comprehensive, integrated solutions to address modern cyber risks and complex identity management challenges.
• We'll explore how integrating privileged access management into Commvault Cloud could influence its investment narrative, especially regarding cybersecurity differentiation.

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Commvault Systems Investment Narrative Recap

For an investor to become a shareholder in Commvault Systems today, they need to believe in the growing demand for enterprise-grade cyber resilience, data protection, and compliance as primary long-term growth drivers. The recent integration with BeyondTrust enhances Commvault Cloud's security features, a clear positive for its differentiated position, but it does not appear to fundamentally alter the most urgent short-term catalyst, winning new customer deals, instead, it mostly strengthens existing client value. Margin compression from the SaaS transition remains the most prominent business risk, and this news does not offset that concern.

Among recent announcements, Commvault’s expanded partnership with Hewlett Packard Enterprise (HPE) stands out for reinforcing the same themes as the BeyondTrust collaboration: both highlight the company’s continuous push to broaden its reach in cyber resilience solutions by working with other key vendors. These alliances could fuel customer retention and subscription growth, supporting vital catalysts such as SaaS ARR momentum, but they do not eliminate exposure to margin pressures or issues around revenue linearity.

By contrast, investors should be aware that while partnerships may add value, the company faces ongoing risk that...

Read the full narrative on Commvault Systems (it's free!)

Commvault Systems is projected to achieve $1.5 billion in revenue and $173.1 million in earnings by 2028. This scenario assumes a 12.2% annual revenue growth rate and an earnings increase of $92 million from the current level of $81.1 million.

Uncover how Commvault Systems' forecasts yield a $208.09 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Fair value estimates for Commvault Systems from four Simply Wall St Community members span from US$75.61 to US$208.09 per share. As you weigh these diverse opinions, remember that recurring margin compression from the SaaS transition could carry important consequences for future profitability.

Explore 4 other fair value estimates on Commvault Systems - why the stock might be worth less than half the current price!

Build Your Own Commvault Systems Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Commvault Systems research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Commvault Systems research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Commvault Systems' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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