Analyst Keith Bachman of BMO Capital reiterated a Hold rating on N-able (NABL – Research Report), with a price target of $8.50.
Keith Bachman has given his Hold rating due to a combination of factors impacting N-able’s financial outlook. While the company reported a satisfactory December quarter with revenue slightly surpassing expectations, the guidance for fiscal year 2025 revenue and adjusted EBITDA margin, including the effects of the Adlumin acquisition, fell short of projections. The anticipated organic growth appears lackluster, partly due to challenges associated with the transition to annual contracts.
Despite positive prospects in the security market and the potential benefits from the Adlumin acquisition, Bachman emphasizes the need for more consistent revenue performance and execution before adopting a more favorable stance on the stock. The ongoing transition to annual contracts is expected to present headwinds to revenue growth in the near term, which contributes to the cautious outlook. Consequently, Bachman maintains a Market Perform rating, reflecting a wait-and-see approach as the company navigates these challenges.