ELLI Elli Mae initiated with a Outperform at FBR Capital; tgt $35
05-Jun-13 08:17 ET
Elli Mae initiated with a Outperform at FBR Capital; tgt $35
FBR Capital initiates ELLI with a Outperform and price target of $35. They believe that Ellie Mae is the leading pure-play mortgage origination software provider and should benefit from the secular tailwind of technology adoption to automate the mortgage origination process. The company's core Encompass suite has functionality that assists with the entire mortgage life cycle from acquiring a customer to closing a mortgage. They believe that Ellie Mae is a compelling investment because of its very large opportunity to grow revenue by increasing its software-as-a-service user base, mortgages originated on its platform, and usage of the Ellie Mae Network.
01-May-13 06:55 ET
Elli Mae: Color on Quarter (26.02 )
•Wunderlich notes mortgage origination volumes continue to outpace forecasts and organic customer adds and SaaS migrations were both strong. With their top and bottom line forecasts increasing yet again, their unchanged $39 tgt is incrementally conservative, in their view, as they could now argue for a multiple above leading SaaS players given its sector-leading profitability and growth profile. Instead, their target only applies a 7x rev multiple looking at run-rate forecasts a year out, at the low-end of leading peer levels.
•Needham notes Q1 was another impressive quarter across the board, highlighted by another quarter of SaaS industry-leading revenue growth. They were particularly impressed by the net new user growth, which reflects ramping sales headcount and strengthening demand trends. They're encouraged by suggestions of notable expansion of the sales pipeline, which could reflect the onerous regulatory and compliance requirements that mortgage bankers need to comply with over the next couple years; $33 tgt.
Oppenheimer notes that, consistent with their preview, Ellie Mae reported an excellent 2013 start marked by record bookings (+9,200 total, +88% y/y) and higher annual revenue guidance. The record bookings performance the past few quarters swells ELLI's backlog, and with better seasonal trends anticipated, increases the odds of ELLI executing consistently in the short-run and gives their forecast an upward bias. Ellie Mae's platform is the industry's most comprehensive end-to-end solution, making it extremely attractive to customers, and its top-tier organic growth rates and profit margins set it apart as one of the highest quality SaaS names; $32 tgt.
07:01 EDT ELLI
theflyonthewall: Ellie Mae weakness a buying opportunity, says Barclays
Barclays said Ellie Mae is less exposed to a slowdown in mortgage refinancing than the broader market and views recent weakness as a buying opportunity. Share are Overweight rated with a $38 price target.