In a report released today, Brian Schwartz from Oppenheimer maintained a Buy rating on Carbonite Inc (NASDAQ: CARB), with a price target of $40. The company’s shares closed yesterday at $35.20.
Schwartz said:
“Consistent with the company’s positive pre-announcement last month, Carbonite reported solid 2Q results that beat consensus. The profitability was a highlight in 2Q for Carbonite’s business and was driven by higher revenue and realizing faster gross margin efficiencies and Mozy expense synergies. On balance, management only reaffirmed the 2018 revenue outlook which may be a slight disappointment for investors given the positive headlines from a capital raise last month coupled with 2Q’s business outperformance. Bottom Line: Our value-oriented turnaround thesis, as part of our rating upgrade on CARB at $14.77 on October 11, 2016 (Upgrade Report), has been working for nearly two years straight, and we believe the fundamentals outlook for the business remains positive. Reiterate Outperform, raise PT to $40 from $35.”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 28.1% and a 79.0% success rate. Schwartz covers the Technology sector, focusing on stocks such as Ultimate Software, Instructure Inc, and Salesforce.com.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Carbonite Inc with a $39.40 average price target.
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Based on Carbonite Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $5.69 million. In comparison, last year the company had a GAAP net loss of $6.38 million.
Based on the recent corporate insider activity of 87 insiders, corporate insider sentiment is negative on the stock. Last month, Anthony Folger, the CFO of CARB sold 2,898 shares for a total of $104,908.
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Carbonite, Inc. engages in the provision of cloud and hybrid backup solutions for consumers and small and medium sized businesses. It provides backup, disaster recovery, high availability and workload migration technologies. The company was founded by Jeffry Flowers and David Friend on February 10, 2005 and is headquartered in Boston, MA.
