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Investing.com - RBC Capital has raised its price target on CommVault Systems (NASDAQ:CVLT) to $217.00 from $185.00 while maintaining a Sector Perform rating on the stock. The data management company, currently valued at $8.76 billion, is trading near its 52-week high of $196.98, according to InvestingPro data.
The price target increase follows CommVault’s latest financial results and guidance, which RBC noted were "nicely ahead despite moderating expectations into results." The data management software company has continued its pattern of exceeding forecasts and subsequently raising guidance, with impressive revenue growth of 18.63% and industry-leading gross margins of 82.02% in the last twelve months.
RBC highlighted CommVault’s "continued momentum, elevated subscription/SaaS growth and traction around multiple product adoption" as key factors behind the adjustment. The firm’s analysis suggests these elements are contributing positively to the company’s performance, reflected in the stock’s strong 15.63% return over the past week. For deeper insights into CommVault’s valuation and growth metrics, check out the comprehensive Pro Research Report available on InvestingPro.
The capital markets firm believes CommVault "remains well-positioned around cyber resilience with its cloud platform," which continues to benefit from additional products and distribution channels. These channels are expected to "start to contribute more meaningfully to the numbers," according to RBC’s assessment.
RBC attributed its price target increase to higher estimates and an increased target multiple for CommVault stock, reflecting the firm’s updated outlook on the company’s growth trajectory in the data management and cyber resilience space.
In other recent news, CommVault Systems reported stronger-than-expected financial results for its first fiscal quarter of 2026. The company posted an earnings per share (EPS) of $1.01, surpassing the forecast of $0.97. Revenue for the quarter reached $282 million, exceeding expectations of $267.84 million. The company attributed its performance to large Term license deals closed in the final week of the quarter, resulting in a 5% revenue beat compared to estimates.
Following these results, Cantor Fitzgerald raised its price target for CommVault to $189, maintaining a Neutral rating. Similarly, Guggenheim increased its price target to $220, keeping a Buy rating, citing strong data protection growth. CommVault’s organic constant currency net new annual recurring revenue (NNARR) reached $40 million, marking nearly 20% year-over-year growth. Management expects this trend to continue for the rest of fiscal year 2026.
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