Needham Upgrades LogMeIn To 'Strong Buy'

In a report published Wednesday, analysts at Needham upgraded

from Buy to Strong Buy. The price target has been raised from $55 to $70. The company posted strong March quarter results, despite the Fx headwinds in the software segment. "We find the beat and raise impressive because the company has not had to use its big "looming catalyst" of monetizing Join.Me, which remains largely a freemium product, while the rest of the company is now paid-only," the analysts said. Needham believes that LogMeIn would continue to post a strong performance, driven by better than expected renewals and pricing power on its "pro" and "central" products. While the company has raised its CY2015 guidance, the analysts expect Join.Me to fuel further upside. The raised guidance also reflects the strong fundamentals in the company's core business, as well as in renewals. Needham has accordingly raised its CY15 and CY16 EPS estimates for LogMeIn.