IPO Carbon Black (CBLK 23.20, +0.18, +0.78%) got off to a hot start when its up-sized deal priced on
May 4. Specifically, its 8.0 mln share IPO priced at $19, the high end of the
upwardly revised $17-$19 price range (previously $15-$17), and opened for
trading at $24.70, good for a 30% opening pop. Since then, however, CBLK has
struggled to sustain any upward momentum with shares currently trading near
their post-IPO lows.
The good news is that the quiet period expired today, and analysts are feeling pretty bullish on the name. With the stock perhaps oversold and with it holding near support at $22.75-$23.00, a catalyst like this may spark some renewed strength. Unfortunately, the broader markets aren't cooperating, but, if it can show some relative strength today, that would be a positive omen going forward.
CBLK is a provider of next-generation endpoint security solutions. Its predictive security cloud platform continuously captures, records, and analyzes rich, unfiltered endpoint data. Endpoints are the physical and virtual locations where sensitive data resides and include desktops, laptops, servers, virtual machines, cloud workloads (services running on cloud servers), fixed-function devices such as ATMs, point of sale systems, and control and data systems for power plants and other industrial assets. They are also the primary focus of attacks because they store valuable data that attackers seek to steal, perform critical operations that attackers seek to disrupt, and are the interfaces where attackers can target humans through email, social engineering, and other tactics.
The company believes the depth, breadth, and real-time nature of its endpoint data, combined with the strength of its analytics platform, provides customers with the most robust and data-intensive product to address the complete endpoint security life-cycle. Its platform enables customers to predict, prevent, detect, respond to, and remedy cyber-attacks before they cause a damaging incident or data breach.
The company primarily sells its products through a channel go-to-market model, which significantly extends its global market reach and ability to rapidly scale its sales efforts. Its inside sales and field sales representatives work alongside an extensive network of value-added re-sellers, distributors, managed security service providers, and incident response firms. Lastly, it has established significant relationships with leading channel partners, including the CDW Corporation, Arrow Electronics, SecureWorks, and Kroll.
Circling back to today's initiations, the clear majority of them are landing on the bullish side. The one that particularly stands out is JP Morgan's Overweight and $39 price target, which is a whopping 70% higher than the current price. Also, KeyBanc Capital Markets and Cowen both put $29 targets on CBLK (26% higher), with an Overweight and Outperform, respectively.
The lone cautious initiation we see so far today is Morgan Stanley's Equal Weight and $23 target.
Overall, sentiment is squarely on the bullish side here for CBLK. With its Q1 results coming up on June 7, which are its first quarterly report as a public company, investors may also look to position themselves on the long side ahead of that report. All in all, there are a few potential catalysts here for CBLK which could push shares higher, with the caveat being that this is more possible if the broader markets hold up.
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