SolarWinds could attract ‘variety of buyers,’ says Truist

Truist says shares of SolarWinds are trading higher after Bloomberg published an article stating that the company is exploring strategic options, including a potential sale. The analyst believes SolarWinds could be attractive to a “variety of buyers” owing to the strong cash flow generation characteristics of the business as well as progress with the subscription-based selling model transition. Another consideration is SolarWinds’ balance sheet dynamics as the company has $1B in net debt, says Truist. The firm has a Hold rating on the shares with an $11 price target. The stock in late morning trading is up 6% to $9.39.