Needham & Company Upgrades Nimble Storage (NMBL) to Strong Buy

Needham & Company upgraded Nimble Storage (NYSE: NMBL) from Buy to Strong Buy with a price target of $35.00 (from $62.00).

Analyst Richard Kugele comments, "While today’s market may shirk high-multiple tech names, not all were created equal, in our view. We think that companies like NMBL, which we believe can grow 50%+ for the next several years, warrant a premium multiple on their growth potential. While the magnitude of that premium has arguably fallen since the peak of “risk-on” for high-growth names, we believe it nonetheless justifies a 7x EV/Sales multiple, $35 PT, and we upgrade to Strong Buy from Buy. We believe growth still matters and will attract investment once profit-taking/current nervousness are exhausted (one need only look at the recent financing round for private all-flash array start-up Pure Storage, implying a $3B+ value)."

For an analyst ratings summary and ratings history on Nimble Storage click here. For more ratings news on Nimble Storage click here.

Shares of Nimble Storage closed at $20.59 yesterday.

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