UPDATE: Wunderlich Securities Raises PT to $70 on CommVault Systems on FQ3 Upside to Consensus

Wunderlich Securities maintained CommVault Systems

with a Hold rating and raised the price target from $44.00 to $70.00. Wunderlich Securities commented, "CommVault (CVLT) reported fiscal 3Q13 EPS of $0.39 on revenue of $128.1mm, well ahead of consensus estimates of $0.32/$122.6mm and a penny ahead of our $0.38/$123mm estimate. As operating margins contracted 110bps sequentially and the company did not pull down any pro forma benefit from the reinstatement of the R&D tax credit, the bottom-line upside was largely a function of top-line outperformance. We are raising our price target from $44 to $70, which reflects a market premium 2x PEG multiple applied to the our projected LT growth rate of 22% and our FY14 EPS estimate of $1.55. We maintain our Hold rating." CommVault Systems closed at $76.90 on Wednesday.