William Blair upgrades Cellebrite to Outperform ahead of analyst day

William Blair upgraded Cellebrite to Outperform from Market Perform ahead of the company’s March 27 analyst day. The company’s Case-to-Closure solution that launched in January fixes Cellebrite’s “previous disjointed offering,” and the unified platform should result in greater adoption of Pathfinder, the analyst tells investors in a research note. The firm says Pathfinder increases the company’s total addressable market from $3B to greater than $8B. Blair believes the stock price does not reflect continued budget strength, recent government software acquisitions and investments with the potential that Cellebrite itself is a target, and the potential that Case-to-Closure contributes to the company continuing its recent string of beats and raises. It sees 24% to 31% share upside potential over the next 12 months.