N-able’s Growth Potential: Buy Rating Backed by Strategic Acquisition and Long-term Initiatives

In a report released today, Mike Cikos from Needham maintained a Buy rating on N-able (NABL – Research Report), with a price target of $10.00.

Mike Cikos has given his Buy rating due to a combination of factors influencing N-able’s future performance. Despite the company’s guidance for CY25 revenue being below market expectations, Cikos sees potential in the recent acquisition of Adlumin. This acquisition not only adds $21 million in annual recurring revenue but also opens a new market channel through resellers targeting the mid-market segment, expanding beyond N-able’s traditional focus on MSPs for small and medium enterprises.
Furthermore, Cikos acknowledges the impact of N-able’s long-term contract initiative, which has grown significantly and is expected to create a temporary revenue headwind. However, he anticipates improvements in net retention rates starting in the second quarter of CY25, following a dip in the first quarter. These strategic moves and anticipated improvements underpin Cikos’s confidence in N-able’s potential for growth, justifying his Buy rating.