Morgan Stanley Hears the SolarWinds Engine Starting to Purr with Q4 Results

In a report published Thursday, Morgan Stanley analyst Keith Weiss reiterated an Equal-Weight rating on SolarWinds SWI. In the report, Morgan Stanley noted, “The SolarWinds engine started purring a bit louder in Q4, with commercial license growth accelerating to ~20% YoY, the strongest level of CY13 as both ASPs and transaction growth took further steps in the right direction. Guidance looks conservative given these improving trends, but at 28x CY14 earnings, upside looks largely priced in.” SolarWinds closed on Wednesday at $42.59.