Pipar Jeffray Maintains Neutral Rating On Compellent Technologies (CML)
July 29, 2010 11:07 PM
Piper Jaffray released a note on Compellent Technologies (CML), in which they maintained its “neutral” rating for the company. Analysts have reduced its target price from to $16.00 to $14.00.
CML reported better-than-expected 2Q revenue growth and impressive new customer wins accompanied by a gain in market share and strong top line growth. Analysts added, “Revenues of $36.5M increased 14.7% sequentially and exceeded the consensus of $33.5M. Gross margins of 53.8% were slightly below our 54.0% estimate, but operating margins of 3.6% expanded 280 bps q/q. The revenue upside and margin expansion helped drive favorable earnings upside with EPS of $0.04 exceeding the consensus estimate of $0.00.”
Key risks for Compellent Technologies include, but are not limited to: reliance on channel partners, limited international exposure, well-capitalized competitors and a challenging macro-economic backdrop.
