Commvault Systems Inc. (NASDAQ:CVLT) is one of the 10 best cybersecurity stocks to invest in according to analysts.
On April 21, Scotiabank initiated coverage of Commvault Systems Inc. (NASDAQ:CVLT), assigning the stock a Sector Perform rating and a price target of $105. In the firm’s view, the competitive landscape in the data protection, backup, and cyber recovery market is quite aggressive.
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The firm noted that the company faces the risk of witnessing its topline growth being derived mainly from leveraging its huge installed base, instead of a more sustainable new logo traction. The firm also believes that the consensus 2027 targets for Commvault do not inspire too much confidence.
The company’s valuation metrics in case of a potential acquisition are also what is driving this investment story. Back on April 13, Oppenheimer observed that an opportunity to acquire Commvault Systems Inc. (NASDAQ:CVLT) exists because of the attention given by Thoma Bravo. In terms of current market makeup, a financial buyer is more likely to acquire the company, considering that the top six players within the segment control nearly 70% of the market share.
According to the firm, acquisition by Rubrik is unlikely to be a good fit from a strategic point of view. The firm also highlighted Cohesity, which bought Veritas recently and has already started the post-deal technological integration. It is very likely that Veeam will make a bid as they aim to enter large enterprise markets. From the valuation point of view, Oppenheimer believes that acquiring Commvault at a 15 times EV/FCF multiple will be a wise investment. This would imply a stock price of $125-$130, offering roughly 40% premium to the prevailing market price. Currently, the firm rates Commvault stock as Outperform with a target price of $150, leading to an upside of almost 65%.
Commvault Systems Inc. (NASDAQ:CVLT) is a cybersecurity and data protection company that delivers data recovery and protection services. Through its Operational Recovery function, it offers data backup, recovery, and workload mobility solutions covering on-premises, hybrid, and multiple cloud environments.
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