Ellie Mae Inc (ELLI) Receives a Rating Update from a Top Analyst

Oppenheimer analyst Brian Schwartz maintained a Buy rating on Ellie Mae Inc (NYSE: ELLI) today and set a price target of $125. The company’s shares closed on Friday at $99.99.

Schwartz noted:

“While the expectations could remain low on Ellie Mae near term, given concerns on the growth trajectory from the timing of recovery returning to the mortgage cycle, negative loan officer industry headlines, and a lingering CFO search, we detect positive trends. These concerns have raised questions about Ellie Mae’s predictability and ability to gain share, despite an expected organic growth and margins acceleration for the business in 2019. Bottom Line: We see an attractive stock set-up since the name has recently become a crowded short, and we think odds look favorable for management to achieve and/or beat consensus estimates and raise the annual outlook in the 3Q results. Consistency in the reported results and/or a new CFO announcement could lower estimate risks and trigger a higher valuation.”

According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 29.9% and a 80.2% 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 Moderate Buy analyst consensus rating for Ellie Mae Inc with a $123 average price target.

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Based on Ellie Mae Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $9.5 million. In comparison, last year the company had a net profit of $18.82 million.

Based on the recent corporate insider activity of 125 insiders, corporate insider sentiment is negative on the stock.

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Ellie Mae, Inc. engages in the provision of software solutions and services for the residential mortgage industry. Its services include Encompass education and certification, professional consulting, implementation, and business writing. The company was founded by Limin Hu and Sigmund Anderman in August 1997 and is headquartered in Pleasanton, CA.