Shrenik Kothari, an analyst from Robert W. Baird, has initiated a new Buy rating on CommVault Systems (CVLT).
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Shrenik Kothari’s rating is based on several compelling factors that position CommVault Systems as a strong investment opportunity. The company has successfully transitioned from its legacy role in backup solutions to a comprehensive data resilience provider, which is crucial in today’s environment of increasing ransomware threats and complex multi-cloud architectures. CommVault’s hybrid-first platform and extensive recovery capabilities, coupled with a robust enterprise customer base, provide a solid foundation for sustained growth.
Additionally, the company’s strategic partnerships and growing presence in marketplaces enhance its go-to-market leverage, leading to larger deals and improved sales productivity. CommVault’s impressive SaaS net retention rate, driven by upselling and cross-selling, underscores its strong customer value proposition. With a focus on profitability and cash flow, the company aligns with the Rule of 35+, appealing to investors seeking both growth and financial stability. These factors, along with a favorable valuation outlook, underpin Kothari’s Buy rating for CommVault Systems.
In another report released on October 15, Guggenheim also maintained a Buy rating on the stock with a $220.00 price target.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CVLT in relation to earlier this year.