Needham & Company Downgrades Nimble Storage (NMBL) to Buy

Needham & Company downgraded Nimble Storage (NYSE: NMBL) from Strong Buy to Buy with a price target of $32.00 (from $35.00).

Analyst Richard Kugele commented, "We expect the solid revenue trajectory exhibited by NMBL continued in F2Q, with further share gains and expansion into enterprise accounts with its hybrid and all-flash solutions. However, our concerns with F17 estimates cause us to proactively lower our EPS outlook as we believe incremental gross profit dollars are more likely to be applied to OPEX for growth rather than leverage through to the bottom line. NMBL remains one of our top picks for 2015 and one of our favorite companies in Next-Gen, and we could once again become more strongly positive if there were to be stock volatility around possible Street revisions or change in Street perception of the strategy. At this time we downgrade to Buy from Strong Buy, with a $32 target (down from $35) based on 5x EV/C16E sales."

For an analyst ratings summary and ratings history on Nimble Storage click here. For more ratings news on Nimble Storage click here.

Shares of Nimble Storage closed at $27.42 yesterday.

You May Also Be Interested In

• Tech Mahindra Ltd. (TECHM:IN) PT Raised to INR1,700 at JPMorgan
• Truist Securities Downgrades Lululemon (LULU) to Sell, 'we believe there are numerous issues at hand'
• UBS Downgrades Delivery Hero (DHER:GR) (DLVHF) to Neutral