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Investing.com - KeyBanc raised its price target on CommVault Systems (NASDAQ:CVLT) to $225.00 from $195.00 on Wednesday, while maintaining an Overweight rating on the data management software provider. The stock, currently trading at $196.56, has surged 15.63% in the past week and is approaching its 52-week high of $196.98. According to InvestingPro analysis, the company appears to be trading above its Fair Value.
The price target increase follows CommVault’s strong fiscal first-quarter performance, which included constant currency annual recurring revenue (ARR) of $40 million, exceeding KeyBanc’s above-consensus estimate of $25 million. The company maintains impressive gross profit margins of 82.02% and has achieved 18.63% revenue growth over the last twelve months.
KeyBanc noted several positive trends in CommVault’s business, including a significant increase in term software deals exceeding $1 million, 39% year-over-year growth in transactions over $100,000, and 45% year-over-year growth in customers with two or more SaaS products.
The company’s fiscal year 2026 EBIT margin guidance was lowered by 50 basis points to 20.5% due to the acquisition of Satori, though the organic margin guidance remained unchanged. KeyBanc indicated that Satori’s expected ARR and revenue contribution would be minimal.
Based on these results, KeyBanc raised its fiscal 2026 and 2027 ARR estimates by 1% and 3% respectively, while increasing its fiscal 2027 free cash flow estimates by 7%.
In other recent news, CommVault Systems reported impressive financial results for the first fiscal quarter of 2026. The company exceeded expectations with earnings per share of $1.01, surpassing the forecasted $0.97, and achieved revenue of $282 million, above the expected $267.84 million. Following this strong performance, several analyst firms have adjusted their outlooks on CommVault. RBC Capital raised its price target to $217, highlighting the company’s strength in cyber resilience. Similarly, Cantor Fitzgerald increased its price target to $189, attributing the rise to successful large Term license deals. Guggenheim also raised its price target to $220, noting strong growth in data protection and a 20% year-over-year increase in net new annual recurring revenue. Management at CommVault anticipates maintaining similar performance levels throughout fiscal year 2026. These developments reflect the company’s continued success in surpassing forecasts and raising guidance.
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