N-able’s Strong Financial Performance and Strategic Growth Drive Buy Rating

William Blair analyst Jason Ader has reiterated their bullish stance on NABL stock, giving a Buy rating today.

Jason Ader has given his Buy rating due to a combination of factors that highlight N-able’s strong financial performance and strategic initiatives. The company reported first-quarter results that exceeded expectations in key areas such as revenue, adjusted EBITDA, and non-GAAP EPS, with a positive influence from foreign exchange rates. Additionally, N-able’s annual recurring revenue (ARR) surpassed consensus estimates, showcasing a significant year-over-year growth.
Furthermore, the company has demonstrated progress in its strategic initiatives, particularly in expanding its market reach through diversified channel partnerships. This includes broadening its focus beyond managed service providers to include resellers, system integrators, and distributors. The announcement of a $75 million share repurchase authorization also reflects confidence in the company’s future prospects. Despite uncertainties in the macroeconomic environment, N-able’s consistent demand for its security solutions and favorable financial guidance for fiscal 2025 further support the Buy rating.

In another report released today, Needham also maintained a Buy rating on the stock with a $10.00 price target.