KeyBanc started coverage of platform as a service, or PaaS, provider Pivotal Software (NASDAQ:PVTL). The company says its platform, which is based on a process called containers, accelerates and simplifies software development.
KeyBanc analyst Alex Kurtz initiated coverage of Pivotal Software with an Overweight rating and a $24 price target.
Pivotal has become one of the top PaaS providers to the world's largest 2,000 companies, according to Kurtz.
Estimating the company's subscription growth rate at 40 percent, Kurtz believes it's benefiting from the rapid expansion of the PaaS market in general and the quickly increasing popularity of containers in particular. Most enterprises believe that containers "will become the standard model" for PaaS, the analyst said.
Additionally, Pivotal's architecture is simpler than that of its competitors, while it provides services that enable large enterprises to undertake "digital initiatives," Kurtz explained.
In a bull-case scenario, Pivotal's stock can reach $27, while it can fall to $15 in a bear case, Kurtz wrote.
Pivotal Software's stock traded around $19.15 at time of publication. It's slated to report its first-quarter results on June 12.
Latest Ratings for PVTL
|May 2018||Bank of America||Initiates Coverage On||Neutral|
|May 2018||Goldman Sachs||Initiates Coverage On||Buy|
|May 2018||UBS||Initiates Coverage On||Neutral|
View More Analyst Ratings for PVTL
View the Latest Analyst Ratings
See more from Benzinga
- 37 Stocks Moving In Tuesday's Mid-Day Session
- Mid-Day Market Update: Dow Falls 240 Points; Medigus Shares Spike Higher
- Marijuana In College: Why Universities Are Offering Cannabis-Focused Classes (And Where You Can Find Them)
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.