FBR Capital noted after the recent quarterly report from SolarWinds, Inc. (NYSE:SWI) that they've made a strong step forward, but pointed to the fact that they must show they can do this on a sustainable level if they're going to make believers out of investors.
"Last night (Thursday October 28), SolarWinds delivered stronger-than-expected September results, which were a 'breath of fresh air for investors,' in our opinion, in light of the company’s recent track record of posting disappointing numbers. It appears after a rough few quarters that SolarWinds has fixed some of its execution/forecasting issues and is back on the road to recovery. While last night’s call/guidance was an important first step towards coming out of the investor penalty box, we believe SolarWinds remains a 'prove me' story until the company can show that sustainable growth and 50%
operating margins are attainable for the next 12 to 18 months," said FBR.
SolarWinds closed Friday at $18.15, gaining $0.17, or 0.95 percent. FBR has a price target of $21 on them, raising it from $20. They also maintain their "Outperform" on the solar company.
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