Needham analyst Alex Henderson maintained a Buy rating on HashiCorp (HCP – Research Report) today and set a price target of $30.00.
Alex Henderson has given his Buy rating due to a combination of factors including the favorable position of HashiCorp (HCP) to capitalize on the anticipated upswing in cloud demand and consumption. Henderson predicts a robust fourth fiscal quarter for HCP, with revenue growth expected to surpass the company’s own guidance, aligning closely with the projected 19% growth in calculated remaining performance obligations (CRPO). The company’s advantageous positioning in the market, coupled with the projected rebound in cloud services, underpins this optimistic outlook.
Additionally, Henderson believes that a conservative growth guidance for FY25, potentially set below the current consensus, will be well-received by investors and could create a strong foundation for the company’s stock value. With shares trading at approximately six times the CY24 Sales consensus, a lower initial growth target may offer an attractive entry point for investors. Henderson’s confidence in HCP is also bolstered by the potential of new product offerings, strategic go-to-market changes, and the company’s ability to successfully convert open-source software users into paying enterprise clients.
In another report released on February 26, Morgan Stanley also upgraded the stock to a Buy with a $30.00 price target.
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Based on the recent corporate insider activity of 116 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HCP in relation to earlier this year.
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HashiCorp (HCP) Company Description:
HashiCorp Inc is engaged in solving the infrastructure challenges of cloud adoption by enabling an operating model that unlocks the full potential of modern public and private clouds. Its cloud operating model provides consistent workflows and a standardized approach to automate the processes involved in delivering applications in the cloud: infrastructure provisioning, security, networking, and application deployment. Its main commercial products are Terraform, Vault, Consul, and Nomad.
Read More on HCP:
- HCP Upcoming Earnings Report: What to Expect?
- Moderna downgraded, Gap upgraded: Wall Street’s top analyst calls
- HashiCorp upgraded to Overweight from Equal Weight at Morgan Stanley
- HashiCorp to announce fourth quarter and fiscal year 2024 financial results Mar. 5, 2024
- DA Davidson software/cloud analysts hold analyst/industry conference call
