SolarWinds initiated with a Neutral at JPMorgan

JPMorgan initiated coverage of SolarWinds with a Neutral rating and $14 price target. SolarWinds has transformed its product and business strategy, going from an inorganic proliferation of disparate point products, toward that of an organic development and a consolidated product portfolio, the analyst tells investors in a research note. The firm is We “very encouraged” by the improvement in the growth glidepath of the business, but views the recently filed litigation complaint by the SEC against SolarWinds as a disappointing development, “throwing a wrench into an otherwise improving profitable-growth story.” Given some of the uncertainties going into 2024, JPMorgan finds it difficult to “underwrite an upside case at this point.”