UPDATE: Oppenheimer Initiates Coverage on CommVault Systems with Perform Rating on Near-Term Potential Headwinds

In a report published Wednesday, Oppenheimer analyst Ittai Kidron initiated coverage on CommVault Systems CVLT with a Perform rating. In the report, Oppenheimer noted, “We're initiating coverage of backup and recovery software specialist CommVault with a Perform rating. We're attracted to the story given: (1) its strong position in the evolving backup and recovery software market; (2) TAM expansion opportunities with the latest version of its Simpana OS (v10); and (3) the potential to address the big data analytics in 2014. That said, we believe CommVault needs to deliver significantly above-Street to justify its high valuation and we see three near-term potential headwinds we'd like out of the way before turning constructive on the shares. These include: (1) an evolving licensing model; (2) higher OpEx associated with new sales and marketing initiatives; and (3) a potential erosion of largest partner Dell.” CommVault Systems closed on Tuesday at $72.58.