Carbonite Inc. Receives a New Rating from Top Analyst

By Carrie Williams

In a report released today, Brian Schwartz from Oppenheimer reiterated a Buy rating on Carbonite Inc. (NASDAQ: CARB), with a price target of $21. The company’s shares closed yesterday at $15.70.

Schwartz wrote:

“Carbonite reported another quarter of very solid results and higher 2016 guidance. We raised our stock rating last month (Upgrade Report, 10/11/16 at $14.77) as we struggled for small-cap ideas, and see the Street overlooking a very good improving business story taking shape. We think the same drivers that are generating the good quarterly results and helping drive solid bookings growth and market share gains (e.g., attractive pricing, packaging and products, ramping distribution capacity, transformative acquisition) should produce greater operating leverage from fully integrating EVault and business scale. Bottom Line: While Carbonite’s business model transition and large product suite add complexity to the story, we see 3Q’s results validating a strong uptrend that’s taking hold for the business, which should attract increasing investor recognition for the stock over time.”

According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 18.3% and a 65.6% success rate. Schwartz covers the Technology sector, focusing on stocks such as Palo Alto Networks, Callidus Software, and Ultimate Software.

Carbonite Inc. has an analyst consensus of Moderate Buy, with a price target consensus of $21.

Based on Carbonite Inc.’s latest earnings report from June 30, the company posted quarterly revenue of $53.44M and quarterly net profit of $1.16M. In comparison, last year the company earned revenue of $34.55M and had a net profit of -$5.97M.

Based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is negative on the stock. Most recently, in September 2016, Danielle Sheer, the VP;General Counsel of CARB sold 362 shares for a total of $4,974.

Carbonite, Inc. provides cloud and hybrid backup solutions for consumers and small and medium sized businesses. It provides easy-to-use, affordable, unlimited, and secure online backup solutions with anytime, anywhere access to files stored on its servers, which is called the Carbonite Personal Cloud. Its backup solutions work in the background, automatically and continuously uploading encrypted copies of its customers files to the Carbonite Personal Cloud. The company’s customers can browse and share their photos, videos, and documents anytime, anywhere using a web browser or its free iPad, iPhone, BlackBerry, and Android applications. Carbonite HomePlus provides customers with additional backup and restore features and its HomePremier further includes automatic online backup for video files as well as a recovery-by-mail feature. Carbonite was founded by Jeffry Flowers and David Friend on February 10, 2005 and is headquartered in Boston, MA.