Analyst Alex Henderson of Needham reiterated a Buy rating on HashiCorp (HCP – Research Report), with a price target of $30.00.
Alex Henderson has given his Buy rating due to a combination of factors including HashiCorp’s strong financial performance in the fourth quarter and positive signals for future growth. Henderson noted that HashiCorp’s revenue exceeded expectations with a 15% increase to $155.8 million, which surpassed consensus forecasts. Additionally, the company’s calculated remaining performance obligations (CRPO) saw a healthy 21% growth to $483 million, with bookings also outperforming expectations. These robust financial metrics, alongside the abatement of cloud optimization headwinds and strong renewal rates, underpin Henderson’s positive outlook on the stock.
Moreover, Henderson is optimistic about HashiCorp’s strategic initiatives aimed at fueling growth, such as differentiating their commercial offerings from open-source solutions, simplifying go-to-market strategies, and positioning HCP Cloud as the primary platform. Although the FY25 guidance for growth was slightly below expectations, Henderson believes in the company’s reacceleration potential, especially in the second half of FY25. This confidence is bolstered by strong pipeline signals, consistent close-rates, secular industry tailwinds, and visible operational improvements. These factors collectively justify the reiteration of a Buy rating and a $30 price target for HashiCorp’s stock.
According to TipRanks, Henderson is a 5-star analyst with an average return of 15.1% and a 57.17% success rate. Henderson covers the Technology sector, focusing on stocks such as Ceragon Networks, Ciena, and Extreme Networks.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $38.00 price target.
See the top stocks recommended by analysts >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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:
