SolarWinds (SWI – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Miller Jump from Truist Financial maintained a Hold rating on the stock and has a $13.00 price target.
Miller Jump has given his Hold rating due to a combination of factors that suggest a balanced risk/reward scenario for SolarWinds Corporation (SWI) at its current market position. SolarWinds has demonstrated resilience in the face of significant business changes, notably its strategic pivot towards subscription revenue growth and a focus on customer retention. While recent trends in customer retention and growth are positive, the Hold rating reflects a cautious stance as more clarity is needed regarding the long-term financial outcomes of the company’s strategic transformations.
The $13 price target set by Miller Jump is anchored in expectations for improved revenue and earnings in the year 2024. This target is based on multiples of 3.9 times the estimated sales and 8.6 times the estimated EBITDA for 2024, which align with industry standards for software companies with similar growth rates. The Hold rating also takes into account the potential risks and opportunities facing SolarWinds, including its position as an acquisition target, the shift to a subscription model, the aftermath of a cyberattack, investment in product innovation, and competitive pressures within the observability market.
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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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