Morgan Stanley: Nimble Storage Increased Its Market Four-Fold

reported its third quarter results on Tuesday after market close. The company reported a loss of $0.15 per share, slightly better than the $0.16 per share loss analysts were expecting while revenue of $59.10 million was higher than the $57.75 million analysts were expecting. In a note to clients on Wednesday, Katy Huberty of Morgan Stanley noted that the company “continues to disrupt the storage market” as new customer adoption doubled year over year, increasing its installed base to more than 4,300 customers. The analyst also notes that international investments are “beginning to pay off” as revenue grew 135 percent from a year ago, contributing 20 percent of total revenue in the quarter. However, Huberty singles out the addition of the Fibre Channel (FC) protocol. The analyst states that the company has now expanded its total addressable market to roughly $20 billion from $5 billion with iSCSI. The company could see its FC revenue surpass iSCSI in as little as two years, according to management, and noted by the analyst. Finally, the analyst sees break-even profitability on track for the second half of calendar year 2015. Shares are Overweight rated with a $35 price target.