On Friday, KeyBanc Capital Markets maintained its Overweight rating on CommVault Systems (NASDAQ:CVLT) stock with a steady price target of $122.00. Following a non-deal roadshow (NDR) with the company's CEO and Investor Relations in Boston, the firm expressed increased confidence in CommVault's strategic direction and growth potential.
The analysts highlighted CommVault's objective to reach a $1 billion Annual Recurring Revenue (ARR) by the end of Fiscal Year 2026. This ambitious target is set without accounting for potential additional revenue streams from cybersecurity, Appranix acquisition, and the partnership with Dell (NYSE:DELL). These factors are seen as potential upside drivers for the company's financial performance.
Investors showed keen interest in several aspects of CommVault's business during the discussions. Notably, the recent transition of the Chief Financial Officer to Chief Commercial Officer was a point of focus, which is indicative of an internal restructuring aimed at bolstering the company's commercial strategy.
Additionally, the firm's Earnings Before Interest and Taxes (EBIT) margins and the corresponding Free Cash Flow (FCF) per share growth at scale were discussed, reflecting investor attention on the company's profitability metrics.
The market conditions for cybersecurity were also a topic of conversation, given the increasing importance of data protection and recovery solutions. CommVault's positioning and competitive landscape in the core backup and recovery space were evaluated, with the company appearing to maintain a strong stance amidst competition.
KeyBanc's reaffirmed Overweight rating and price target suggest a positive outlook for CommVault's stock, based on the company's strategic initiatives and growth prospects. The rating indicates that the firm believes CommVault shares could outperform the average total return of the stocks covered over the next six to 12 months.
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