In a report released yesterday, Robert Oliver from Robert W. Baird maintained a Hold rating on SolarWinds (SWI – Research Report), with a price target of $12.00.
Geoff Meacham has given his Hold rating due to a combination of factors including SolarWinds’ recent performance and the prevailing economic climate. Despite the company’s strong execution in recent quarters, forecasts for 2024 have been cautiously revised downward to account for the persistent macroeconomic challenges. SolarWinds is taking a conservative stance in its initial 2024 guidance, with the anticipation of revenue growth potentially falling short of the street’s expectations.
Moreover, while the company’s Q3 results surpassed key financial metrics and its subscription growth remains robust, the headwinds faced in closing larger deals and the need for more approvals are expected to persist. However, Meacham acknowledges the progress SolarWinds has made in its product offerings and business model, suggesting that with its solid execution and low valuation, the company could present a turnaround story in 2024 if these positive trends continue.
According to TipRanks, Oliver is a 5-star analyst with an average return of 9.6% and a 56.25% success rate. Oliver covers the Technology sector, focusing on stocks such as Sprout Social, Aspen Technology, Inc., and Klaviyo, Inc. Class A.
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SolarWinds (SWI) Company Description:
SolarWinds Corp. engages in the provision of information technology (IT)infrastructure management software. It provides network management, systems management, database management, IT security, IT helpdesk, and cloud services. The company was founded in 1999 and is headquartered in Austin, TX.
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