Why Nimble Storage Inc. Shares Could Rebound 35%
While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.
What: Shares of Nimble Storage soared 8% this morning after Morgan Stanley upgraded the flash storage technologist from equal-weight to overweight.
So what: Along with the upgrade, analyst Katy Huberty planted a price target of $38 on the stock, representing about 36% worth of upside to yesterday's close. So while momentum traders might be turned off by Nimble's sharp pullback in recent months, Huberty's call could reflect a sense on Wall Street that the concerns surrounding its growth trajectory are becoming overblown.
Now what: According to Morgan, Nimble's risk/reward trade-off remains rather attractive at this point. "We raise revenue estimates above consensus and upgrade NMBL to OW with a $38 PT," said Huberty. "Our recent meetings with management highlight: 1) new products will increase enterprise penetration, 2) Nimble's competitive moat is intact and sustainable, and 3) gross margins remain stable." More importantly, when you consider Nimble's rock-solid balance sheet and still-beaten stock price, the downside seems limited enough to bet on that upbeat outlook.
Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!
The article Why Nimble Storage Inc. Shares Could Rebound 35% originally appeared on Fool.com.Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.