Commvault (CVLT) Gains New Bullish Coverage as KeyBanc Sets Overweight Rating on Stock

KeyBanc have recently initiated coverage on Commvault Systems' stock (NASDAQ: CVLT), marking the firm with an Overweight rating and an encouraging price target of $192.

This bullish stance comes amid positive assessments of the company’s growth trajectory in the backup and recovery market, coupled with Commvault’s reinforced position as a market share gainer with an improving go-to-market execution in cyber resilience.

The coverage from KeyBanc comes with the stock at $161.60, up by approximately 0.11% in the pre-market session. The market values Commvault at $7.06 billion, with its shares fluctuating in the last 52 weeks from a low of $77.30 to a high of $178.59.

Eric Heath, the analyst from KeyBanc, highlighted Commvault’s distinctiveness in the market, underscoring its broad support capabilities for different workloads, applications, and deployment options. The firm’s positive outlook is anchored on Commvault’s accelerating market growth and a strategy that appears to be paying dividends in the realm of improved cyber resilience.

Commvault, headquartered in Tinton Falls, New Jersey, is an enterprise that stands firmly within the technology sector, specifically dealing in software application industry segments. The company’s operations span various aspects of data protection and information management, offering solutions aimed at enhancing cyber resilience through data backup and recovery.

With a revenue stream of approximately $898 million and a net income to common of about $177 million, Commvault’s financials manifest robustness coupled with a forward-looking approach. The ratio of insider to institutional holdings reveals a vast majority of shares, at over 97%, being held by institutions. While the firm does not pay dividends, reflecting a focus on reinvestment for expansion, its trailing P/E ratio stands at a competitive 40.97 and the forward P/E at 41.16.

Analysts have placed a mean target price for Commvault at $175.87, with a general buy recommendation. The assessment of six analysts offers a glimpse into the broader sentiment, but cannot be relied on to make financial decisions.

The Overweight rating from KeyBanc could be a harbinger of steady growth for Commvault, powered by its expansive capabilities and strategic inroads into improving cyber resilience. However, with the stock having delivered moves near resistance.