SWI Quarterly EPS Ahead, Acquisition Viewed Favorably
Analysts at FBR Capital Markets maintain their "outperform" rating on SolarWinds Inc (NYSE: SWI). The target price for SWI is set to $24.
SolarWinds reported its December quarter EPS ahead of the consensus on the back of solid control. “In particular, we believe the company’s strong top-line guidance and commentary surrounding the improving commercial vertical on both the North American and international fronts should be a focal point for investors as they digest results this morning,” the analysts say.
“Although, the Tek-Tools acquisition that was announced in late January will result in margins breaking below the 50% watermark during 2010, we continue to view this acquisition favorably, as it expands the company’s product footprint into market areas that we believe are poised to show strong growth and offer nice cross-selling opportunities over the next 12 to 18 months,” the analysts add.
