CommVault stock rating upgraded by Piper Sandler on Gen-Z positioning

Published 13/10/2025, 08:06
CommVault stock rating upgraded by Piper Sandler on Gen-Z positioning

Investing.com - Piper Sandler upgraded CommVault Systems (NASDAQ:CVLT) from Neutral to Overweight on Monday, while raising its price target to $200.00 from $195.00. The new target represents significant upside potential, with analysts’ targets ranging from $176.80 to $230.00. According to InvestingPro data, the company maintains impressive gross profit margins of 82% and has delivered robust revenue growth of 21.6% over the last twelve months.

The upgrade follows recent market checks and reflects the firm’s confidence in CommVault’s position as a "Gen-Z player" in the backup and recovery space. Piper Sandler noted the company is experiencing "durable demand trends" as market needs shift away from "Modern Age" requirements. The company’s solid financial health is reflected in its strong balance sheet, with more cash than debt, as highlighted in InvestingPro’s analysis.

The research firm highlighted CommVault’s platform flexibility across consumption models as a key advantage, allowing it to address various Gen-Z market needs effectively. This positioning is creating a "net-benefit" for the company in the competitive landscape.

Piper Sandler identified the upcoming SHIFT event in November as a potential catalyst for the stock. The firm made its rating change following a recent pullback in CommVault shares over the past few weeks.

The upgrade was further supported by CommVault’s increasingly competitive offerings, successful go-to-market investments, and its subscription transition, which Piper Sandler believes is providing "increased visibility" for the business.

In other recent news, Commvault Systems announced the pricing of an upsized $785 million convertible notes offering, which was initially set at $750 million. This private offering of 0% Convertible Senior Notes due 2030 is expected to close on September 5, pending customary closing conditions. Additionally, DA Davidson maintained its Buy rating on Commvault Systems, setting a price target of $220 and expressing confidence in the company’s upcoming fiscal second-quarter results, particularly in exceeding net new annual recurring revenue estimates. Truist Securities also initiated coverage on Commvault Systems with a Buy rating and a price target of $230, highlighting the company’s strong position in data security amidst rising ransomware threats.

Furthermore, Commvault launched Clumio for Apache Iceberg on AWS, marking it as the first solution to offer Iceberg-aware, air-gapped cyber resilience for data lakehouses. This new solution aims to fill protection gaps in Apache Iceberg environments, which are increasingly adopted for AI and analytics workloads. In a strategic move, Commvault partnered with BeyondTrust to integrate identity security features, enhancing data recovery efficiency and access control to critical systems. These recent developments reflect Commvault’s ongoing efforts to strengthen its market position and address evolving cybersecurity challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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