Oppenheimer analyst Brian Schwartz maintained a Buy rating on Carbonite Inc (NASDAQ: CARB) today and set a price target of $35. The company’s shares closed yesterday at $32.75, close to its 52-week high of $33.55.
Schwartz wrote:
“We maintain our Outperform rating and raise our price target to $35 (from $30) on CARB shares after 1Q results were ahead of consensus, which should support valuation. Positively, the business displayed a record performance for a first quarter for PF gross margin and PF operating margin which we think demonstrates the model leverage and management achieving operating synergies from acquisitions. On balance, the SMB bookings growth decelerated to multi-year lows, though partially from tough comparisons. Bottom Line: We believe the fundamental outlook for the business is positive while investor expectations remain low. In addition, the guidance looks appropriately set for Carbonite’s good execution trend to continue, which could garner new investors’ interest in CARB shares given a sizable valuation gap versus industry peers.”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 27.3% and a 80.1% success rate. Schwartz covers the Technology sector, focusing on stocks such as Ultimate Software, Instructure Inc, and Salesforce.com.
Currently, the analyst consensus on Carbonite Inc is Moderate Buy and the average price target is $33, representing a 0.8% upside.
In a report issued on April 27, JMP Securities also maintained a Buy rating on the stock with a $36 price target.
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Based on Carbonite Inc’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $1.61 million. In comparison, last year the company had a net profit of $7.6 million.
Based on the recent corporate insider activity of 90 insiders, corporate insider sentiment is negative on the stock.
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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.
