N-able (NABL): Assessing Valuation After Q3 Earnings Decline and Updated Growth Outlook

N-able (NABL) just released its third quarter financial results, revealing a sharp drop in net income compared to last year. Along with the earnings update, management shared new guidance for upcoming revenue growth through the end of 2025.

See our latest analysis for N-able.

Despite N-able’s upbeat revenue outlook, investors have been cautious, as reflected in a 1-year total shareholder return of -28.75% and a year-to-date share price return of -18.81%. Recent selling suggests momentum is fading, even as management signals future growth.

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With shares still trading well below analyst targets and improving revenue guidance on deck, the key question for investors is whether N-able is now a bargain or if the market already reflects all the potential upside.

Most Popular Narrative: 20% Undervalued

With N-able trading at $7.51 and a narrative fair value of $9.44, there is a significant gap that signals upside potential if future execution matches expectations. This disconnect between price and forecast creates room for speculation as to what could drive shares higher in the coming years.

Accelerating adoption of cloud technologies and the shift toward unified, integrated platforms has increased demand for N-able's end-to-end cyber resilience platform, positioning the company to capture a larger share of the expanding IT management and cybersecurity market, likely driving sustained ARR and top-line revenue growth.

Read the complete narrative.

What's behind this bold valuation view? The narrative banks on key changes in N-able's business model, such as higher recurring income, margin expansion, and aggressive market capture. Curious about which future financial milestones could justify this premium? The next chapter of the story is packed with punchy assumptions and daring forecasts. Click through to see the numbers that investors are betting on.

Result: Fair Value of $9.44 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, industry consolidation and the rapid commoditization of IT management software could put pressure on N-able's margins and challenge its growth outlook in the coming years.

Find out about the key risks to this N-able narrative.

Build Your Own N-able Narrative

If you have a different take or want to draw your own conclusions from the latest data, you can shape a personal narrative in just a few minutes. Do it your way.

A great starting point for your N-able research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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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