Wells Fargo Securities Sees Potential Tailwinds Ahead for Nimble Storage

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In a report published Monday, Wells Fargo Securities analyst Maynard Um reiterated an Outperform rating on
Nimble StorageNMBL
. In the report, Wells Fargo Securities noted, “Nimble's 10-Q was released last week. Two key tailwinds we highlight are its warranty accruals and international rev, where we believe timing of shipments likely pushed out $2MM, by our estimation, into next quarter. Most encouraging, in our opinion, is the gross margin implication as despite the accrual headwind last quarter, product gross margin still outperformed. We continue to believe Nimble's growth drivers are in place--channel leverage, international expansion, new product TAM expansion, large enterprise & service provider growth, continued growth in SMB, as well as relatively small market share today (plenty of runway for share gains and growth). While we believe the Nimble story is not predicated on overall growth of the storage market (more due to market share gains from incumbents), we believe the backdrop of stronger enterprise spending should also benefit the company.” Nimble Storage closed on Friday at $28.50.
Posted In: Analyst ColorReiterationAnalyst RatingsMaynard UmWells Fargo Securities
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