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What Nimble Storage's AFA Launch Means For Competition

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Summit Research issued a note on Nimble Storage, Inc. (NYSE: NMBL) after the company formally launched its highly anticipated All-Flash Array (AFA). The firm rates Nimble Storage as a Buy with a $22 price target.

Analysts Srini Nandury and Srini Sundararajan highlighted the implications of Nimble's AFA launch on several competitors.

Pure Storage (NYSE: PSTG)

"In our view, Nimble's launch of AFA does not bode well for Pure Storage... we expect elongated sales cycles, accompanied probably by gross margin pressure beginning April quarter."

Seagate Technology PLC (NASDAQ: STX) and Western Digital Corp. (NASDAQ: WDC)

"We expect the enterprise disk business of both Seagate and Western Digital to decline faster than what the Street is expecting. The drive vendors will be under enormous strain for next few quarters as the enterprise drive shipment declines will accelerate."

While analysts noted that many of Nimble's competitors are hurt by this news, Summit did highlight that EMC Corporation (NYSE: EMC) and NetApp Inc. (NASDAQ: NTAP) have other lines of businesses and because of this diversification, Nimble's AFA launch will not affect its core business operations to the extent of other, less diversified competitors.

Latest Ratings for NMBL

DateFirmActionFromTo
Mar 2017DowngradesBuyHold
Mar 2017DowngradesOverweightEqual-Weight
Mar 2017DowngradesOutperformMarket Perform

View More Analyst Ratings for NMBL
View the Latest Analyst Ratings

Posted-In: Srini Nandury Srini Sundararajan Summit ResearchAnalyst Color Price Target Analyst Ratings

 

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