Commvault falls after Piper has ‘incremental concern’ after talks

Piper Sandler earlier today expressed “incremental concern” on Commvault (CVLT) after speaking with management. The stock in afternoon trading is down 6%, or $10.23, to $169.94. Commvault has been expanding its partnerships as part of its go-to-market strategy, and while conversions from perpetual to subscription are occurring, they will be “de-minimis,” the analyst told investors in a research note. Piper says the current Q1 net new annual recurring revenue consensus include many estimates having perpetual maintenance annual recurring revenue up quarter-over-quarter, when it has been declining over the last few quarters. This has been getting around the buy-side over the last week, driving the share underperformance, Piper contends. The firm has a Neutral rating on Commvault with a $168 price target