BTIG analysts expect modest upside from earnings reports of Seagate Technology PLC (NASDAQ: STX) and Western Digital Corp (NASDAQ: WDC) this week and see an upbeat print from CommVault Systems, Inc.
(NASDAQ: CVLT).
Seagate And Western Digital
Seagate and Western
Digital report quarterly earnings after the close on January 24 and January 25, respectively. BTIG believes supply remains
constrained relative to demand against a broader backdrop of positive structural change across both HDDs and memory.
“On the HDD front, we think we’re likely to see modest upside to revenues for both WDC and STX due to ongoing strength in cloud
build-outs and moderating decline in PCs, partially offset by slightly lower enterprise storage demand, where our quarterly checks
have been soft,” analysts including Joel Fishbein wrote in a note.
On the NAND front, the analyst noted that results from semiconductor peers and incremental updates out of the supply chain
suggest that supply remains tight relative to demand, which is good for memory pricing, revenues and gross margins.
BTIG has Buy ratings on both Seagate and Western Digital, with price target of $50 and $85, respectively.
CommVault
CommVault reports Wednesday. The analysts expect revenues to exceed their estimates of 6 percent growth and billings to beat
forecast of 9 percent growth.
“Our checks on the quarter were positive and we believe Commvault (CVLT, Buy, $61 PT) should continue to execute well and
positive momentum should persist,” Fishbein continued.
And Others
ServiceNow
Inc (NYSE: NOW) is scheduled to announce its
fourth-quarter numbers Wednesday after the close. BTIG projects the company’s results to come in line with our revenue and billings
growth estimates of 33 percent and 30 percent, respectively, driven by the company’s sales and marketing investments. BTIG has a
Buy rating on the stock.
Citrix Systems, Inc. (NASDAQ: CTXS) too
reports its fourth-quarter results Wednesday after the close. The analysts, who have a Neutral rating on the shares, estimate that
revenues should decline 1 percent, while billings expected to grow 3 percent.
BTIG, which has a Neutral rating on the shares, believes Citrix
will face tougher competition in the coming days, despite being well positioned at the nexus of multiple secular trends in the
software industry.
Further, Proofpoint Inc (NASDAQ: PFPT)
reports Thursday. The analysts project results to be in line to slightly ahead of their revenue (39 percent) and billings (38
percent) growth estimates.
Meanwhile, the company's recent Federal Risk and Authorization Management Program (FedRAMP) certification would help Proofpoint
gain more presence in the government space. BTIG maintains its Buy rating on the stock.
Latest Ratings for CTXS
Date |
Firm |
Action |
From |
To |
Jan 2017 |
Wells Fargo |
Initiates Coverage On |
|
Market Perform |
Dec 2016 |
Mizuho |
Upgrades |
Neutral |
Buy |
Oct 2016 |
Cowen & Co. |
Maintains |
|
Outperform |
View More Analyst Ratings for
CTXS
View the Latest Analyst Ratings
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