SolarWinds Rating Lowered to Sell at Goldman Sachs Group Inc. (SWI)
SolarWinds (NYSE:SWI) was downgraded by research analysts at Goldman Sachs Group Inc. from a “neutral” rating to a “sell” rating in a report released on Friday, TheFlyOnTheWall.com reports. They currently have a $35.00 price objective on the stock, down from their previous price objective of $46.00. Goldman Sachs Group Inc.’s price target points to a potential downside of 10.53% from the stock’s previous close.
The analysts wrote, “We downgrade SWI to Sell from Neutral and see 11% downside to our new $35 12-month target ($46 prior) vs. 0% average upside for our coverage. A growing product portfolio, an evolving go-to-market, new geographies, and serving MSPs all add to complexity and risk not fully reflected in consensus. We also note a slow macro and potential secular challenges as customers shift to MSPs. We see stabilization taking longer than consensus implies, which may cause SWI to sacrifice sales growth to maintain margins, or give up some margin for sales, pressuring FCF, EPS, and the multiple. We lower 2014/15/16 non-GAAP EPS estimates 6%/14%/22% on the revised outlook.”
SolarWinds (NYSE:SWI) traded down 3.07% on Friday, hitting $37.92. The stock had a trading volume of 1,214,817 shares. SolarWinds has a one year low of $35.31 and a one year high of $61.52. The stock’s 50-day moving average is $38.11 and its 200-day moving average is $45.03. The company has a market cap of $2.860 billion and a P/E ratio of 32.90.
SolarWinds (NYSE:SWI) last released its earnings data on Thursday, July 25th. The company reported $0.40 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.36 by $0.04. The company had revenue of $77.50 million for the quarter, compared to the consensus estimate of $78.94 million. During the same quarter in the prior year, the company posted $0.33 earnings per share. The company’s quarterly revenue was up 21.1% on a year-over-year basis. Analysts expect that SolarWinds will post $1.53 EPS for the current fiscal year.
A number of other firms have also recently commented on SWI. Analysts at Zacks upgraded shares of SolarWinds (NYSE:SWI) from an “underperform” rating to a “neutral” rating in a research note to investors on Tuesday, July 30th. They now have a $36.60 price target on the stock. Separately, analysts at Robert W. Baird cut their price target on shares of SolarWinds (NYSE:SWI) from $54.00 to $46.00 in a research note to investors on Friday, July 26th. They now have an “outperform” rating on the stock. Finally, analysts at JPMorgan Chase & Co. cut their price target on shares of SolarWinds (NYSE:SWI) from $73.00 to $54.00 in a research note to investors on Friday, July 26th. They now have an “overweight” rating on the stock.
One analyst has rated the stock with a sell rating, eleven have issued a hold rating and three have given a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $44.33.
SolarWinds, Inc (NYSE:SWI) designs, develops, markets, sells and supports enterprise information technology (IT), infrastructure management software to IT professionals in organizations of all sizes.
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