Carbonite Inc (CARB) Gets a Hold Rating from Oppenheimer

By Jason Carr

In a report released today, Brian Schwartz from Oppenheimer reiterated a Hold rating on Carbonite Inc (CARBResearch Report). The company’s shares closed yesterday at $29.30.

Schwartz commented:

“Carbonite’s 4Q18 results and guidance missed consensus, consistent with our ratings downgrade on and expectations in our 2019 SaaS/ Applications Playbook. The business is struggling under the weight of having to effectively integrate a large company acquisition per annum since 2016, and the Street mis-modeling the business. The Webroot acquisition further increases the business operations complexity. Bottom Line: We believe management should have reset Street expectations and focused on achieving growth and operational synergies from the roll-up strategy, rather than paying up to acquire another large company and in a commodity market (endpoint security). With an already complex story further changing and new questions arising about the core business and uses of capital, we reiterate our Perform rating.”

According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 27.2% and a 76.3% success rate. Schwartz covers the Technology sector, focusing on stocks such as Salesforce.com, Trade Desk Inc, and MiX Telematics.

Carbonite Inc has an analyst consensus of Moderate Buy, with a price target consensus of $33.33, implying a 13.8% upside from current levels. In a report released today, Stifel Nicolaus also downgraded the stock to Hold with a $25 price target.

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The company has a one-year high of $43.63 and a one-year low of $20.50. Currently, Carbonite Inc has an average volume of 384.4K.

Based on the recent corporate insider activity of 121 insiders, corporate insider sentiment is negative on the stock.

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Carbonite, Inc. engages in the provision of cloud and hybrid backup solutions for consumers and small and medium sized businesses. It provides backup, disaster recovery, high availability and workload migration technologies. The company was founded by Jeffry Flowers and David Friend on February 10, 2005 and is headquartered in Boston, MA.