Barclays Met With MobileIron Management; Here's What Happened

In a report published Thursday, Barclays analyst Raimo Lenschow maintained an Overweight rating on

, with a price target of $9. Mobileiron reinstated its 4Q exit targets for FY15 and FY16, thus putting the company back towards a path of becoming cash flow breakeven by end FY16. "Mobileiron reaffirmed its previously issued top line guidance and reinstated its plan to reach adjusted operating margins of -24 to -28 percent in 4Q15, and -8 to -12 percent in 4Q16. Management believes that improved sales productivity of existing sales resources and an expanding product portfolio give it the necessary leverage to achieve the aforementioned margin targets," analyst Raimo Lenschow mentioned. The company also announced the exit of its sales head John Donnelly in 2H15, which Lenschow believes could "potentially result in sales execution challenges until a permanent replacement is named." Mobilelron is expected to benefit from the rapidly growing EMM market. The company expects to expand via new customer acquisitions as well as increased penetration into existing accounts. In the report Barclays noted, "We believe MobileIron's current valuation at approximately 2x EV/Sales has fallen to levels where its market leading position, consistent win rates, and stable +90 percent renewal rates are being underappreciated by investors."