CommVault Systems stock price target maintained at $220 by DA Davidson

Investing.com - DA Davidson reiterated its Buy rating on CommVault Systems (NASDAQ:CVLT) with a price target of $220.00 on Wednesday. The target represents a 28% upside from the current price of $172.29, though InvestingPro analysis suggests the stock may be trading above its Fair Value.

The research firm expressed confidence in CommVault’s upcoming fiscal second-quarter results, suggesting the company will deliver net new annual recurring revenue (NNARR) above current consensus estimates.

DA Davidson cited "relatively strong channel feedback, favorable consensus ARR estimates, lessening headwind from Clumio" as factors supporting its outlook for the data management software provider.

The firm addressed investor concerns about CommVault reaching peak growth, outlining how the company could achieve approximately 17-18% year-over-year organic ARR growth at constant currency in fiscal year 2027, compared to current consensus estimates of 16%.

DA Davidson described CommVault as "one of our favorite SMID cap growth ideas" and highlighted its "particularly attractive" relative valuation at current levels.

In other recent news, Commvault Systems has announced an upsized private offering of $785 million in convertible senior notes due 2030, which is $35 million more than initially planned. This offering is aimed at qualified institutional buyers and is expected to close soon, pending customary conditions. Truist Securities has initiated coverage on Commvault Systems with a Buy rating, setting a price target of $230. The firm highlighted Commvault’s strong position in data security amid increasing ransomware threats.

Additionally, Commvault has launched Clumio for Apache Iceberg on AWS, marking the first cyber resilience solution for Apache Iceberg environments. This new offering aims to fill protection gaps in data lakehouses, which are becoming more prevalent for AI and analytics workloads. In a strategic move, Commvault has also partnered with BeyondTrust to integrate their cloud cyber resilience platform with BeyondTrust’s Password Safe solution, enhancing credential management and data recovery. Moreover, Commvault has expanded its HyperScale portfolio with the introduction of HyperScale Edge and HyperScale Flex solutions, targeting remote sites and high-performance data workloads, respectively.

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