Nimble Storage Shares Drop Following Q1 Earnings; What do the Analysts Say?

Shares of Nimble Storage, Inc.

were down ~5 percent midday Friday despite posting better than expected fiscal 2015 first quarter results a day prior. Notable figures from the report include 110 percent year-over-year revenue growth and an $0.01 EPS despite estimates for it to in the red. Amid Nimble's earnings release, analysts have shown mixed feelings on the company's outlook. At Raymond James the analysts have maintained their Market Perform rating and acknowledged Nimble's "superior growth rate". However, they believe that this has already been priced into the company's shares. Looking forward, Raymond James doesn't see Nimble as profitable until the fourth quarter of fiscal 2016. Over at Macquarie the analysts are also on the sidelines in regard to Nimble and have decided to reiterate a Neutral rating. The team a Macquarie also acknowledged Nimble's solid results but remains concerned with management's comments that they will face increased price competition from "large incumbents". Additionally, they recommend caution heading into the June 11th expiration of Nimble's IPO lock-up which will free up ~90 percent of the companies float for trading. In a contrasting view, Pacific Crest has come out bullish on Nimble and given it an Outperform rating and a $42 price target. To support this position, analysts at Pacific crest cited improving demand fundamentals based on revenue that has doubled year-over-year for the last 13 quarters. On the opposite end of the spectrum compared to Macquarie, Pacific Crest recommends building position in Nimble due to any weakness from the lock-up expiration.