N-able’s Promising Financial Trajectory and Growth Potential Justifies Buy Rating

Analyst Mike Cikos from Needham maintained a Buy rating on N-able (NABL – Research Report) and keeping the price target at $10.00.

Mike Cikos has given his Buy rating due to a combination of factors that highlight N-able’s promising financial trajectory. The company has set ambitious targets, including a significant Adjusted EBITDA Margin and Unlevered Free Cash Flow Margin, which are expected to be achieved by CY28. These targets are supported by management’s confidence in improving key metrics, such as Gross Retention Rate (GRR) and Net Revenue Retention (NRR), indicating a solid growth outlook.
Moreover, N-able’s management has reiterated its guidance for CY25 and presented a robust model aiming for over $750 million in Annual Recurring Revenue (ARR). This strategic focus on moving up-market and enhancing financial performance underscores the company’s potential for substantial growth, justifying the Buy rating. Cikos’s confidence is further bolstered by the company’s historical performance and its ability to meet or exceed financial expectations.