Commvault Systems (CVLT) would see a "limited negative impact" from potential cuts by the US Department of Government Efficiency or tariff-connected headwinds, Oppenheimer said in a Wednesday note.
The data management software company is due to report fiscal Q4 results on Tuesday and Oppenheimer analysts said they expect better-than-expected results backed by "robust demand trends." However, the analysts also expect the company to "prudently take a conservative view on guidance" that incorporates an uncertain macro environment.
Most organizations view the data backup and recovery sector as "mission-critical," and a way to protect themselves against cyberthreat. Due to this, the sector has experienced continued demand strength during the quarter ended March 31, Oppenheimer said.
Oppenheimer analysts said industry checks point to the company as being "a leading vendor that is gaining market share."
Oppenheimer lowered its price target to $180 from $200 due to a compression in market multiples. However, it reiterated an outperform rating on the stock as its long-term thesis remains intact.
Shares were up 4% in recent trading.
Price: 155.57, Change: +5.97, Percent Change: +3.99
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