B.Riley recently initiated analyst coverage on N-able Inc (NYSE:NABL), assigning it a Buy rating with a $10.00 price objective. This valuation implies roughly a 50% appreciation potential when compared to the current share price near $6.40. The recommendation aligns with findings from InvestingPro indicating N-able’s stock is trading close to its annual low around $6.07 and appears undervalued against Fair Value benchmarks.
N-able operates as a software-as-a-service (SaaS) provider, delivering a platform designed to empower managed service providers (MSPs) in effectively supporting small and medium-sized enterprises (SMEs). Their integrated platform encompasses remote monitoring and management (RMM) tools, comprehensive security solutions, and robust data protection services. Financially, the company reported annual revenues of approximately $497.67 million, alongside an impressive gross profit margin of 81%, reflecting operational efficiency within its business model.
B.Riley’s evaluation highlights N-able’s strategic positioning to capitalize on the increasing demand for managed services within the SME segment. The analyst underscores the company’s differentiated platform and extensive service breadth as critical competitive advantages amidst intensifying market needs.
Moreover, the firm emphasizes the impact of artificial intelligence advancements on the cybersecurity threat landscape, which is fueling growth in the managed service markets, especially for security and data protection areas where N-able holds specialization.
Consistent profitability and solid cash flow generation form part of N-able’s financial strengths noted by B.Riley. Additionally, the company has been executing share repurchases following a stock buyback authorization enacted last year, indicating management’s commitment to enhancing shareholder returns.
Recent corporate developments include an amendment to N-able’s credit agreement which increased its term loan facility to $400 million and extended the maturity date to November 26, 2032. The revolving credit facility maturity has also been prolonged with lowered borrowing interest rates, potentially further supporting N-able’s financial flexibility.
Governance changes include the appointment of Patrick Pulvermueller as an independent Class III director, whose term will conclude at the 2027 annual shareholders meeting. Pulvermueller brings relevant industry experience from his tenure at Acronis and GoDaddy, potentially strengthening the company’s strategic oversight.
On the product front, N-able has released a public preview of its N-central unified endpoint management solution, certified as compliant with CMMC 2.0 standards. This release aims to support businesses operating within the Defense Industrial Base supply chain, showcasing N-able's efforts to tailor offerings to evolving regulatory and market requirements.
These initiatives collectively demonstrate N-able’s active progression in both leadership and technology, positioned to leverage growth trends within the MSP and SME sectors.