Commvault Systems (CVLT) has disclosed a new risk, in the Debt & Financing category.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
The conditional conversion feature of Commvault Systems’ Notes poses a significant risk to the company’s financial stability. If triggered, it allows note holders to convert their Notes during specified periods, potentially requiring Commvault to settle these obligations in cash. This could strain the company’s liquidity and financial condition, as well as impact its results of operations. Additionally, even without conversions, accounting rules might necessitate reclassifying the Notes as current liabilities, thereby reducing reported working capital.
The average CVLT stock price target is $203.14, implying 44.96% upside potential.
To learn more about Commvault Systems’ risk factors, click here.