N-able’s Strong Q1 Performance and Growth Potential Reinforce Buy Rating

Mike Cikos, an analyst from Needham, maintained the Buy rating on N-able (NABL – Research Report). The associated price target remains the same with $10.00.

Mike Cikos has given his Buy rating due to a combination of factors that highlight N-able’s strong performance and potential for growth. The company’s first-quarter results for the calendar year 2025 exceeded both guidance and market expectations, particularly when adjusted for foreign exchange impacts. This was evident in the acceleration of Annual Recurring Revenue (ARR) growth to 10.9% from the previous quarter’s 10.3% on a constant currency basis.
Despite the positive results and management’s optimistic guidance for the upcoming quarter, N-able maintained its projected growth rates for ARR and revenue for the full year 2025. The company’s net retention rate, adjusted for ASC 606 revenue recognition changes, suggests potential for improved retention and growth as it transitions customers to longer-term contracts. With a consistent addition of approximately $10 million in net new ARR each quarter, N-able is positioned to exceed the midpoint of its guidance, reinforcing the Buy recommendation.

According to TipRanks, Cikos is a 4-star analyst with an average return of 8.3% and a 50.36% success rate. Cikos covers the Technology sector, focusing on stocks such as N-able, Cellebrite DI, and Confluent.