SolarWinds price target raised to $16 from $13 at RBC Capital

RBC Capital analyst Matthew Hedberg raised the firm’s price target on SolarWinds (SWI) to $16 from $13 and keeps a Sector Perform rating on the shares as part of a broader research note previewing Q4 results and 2025 for Software. Based on solid December budget flush checks and stable macros, the firm is positive on the sector’s fundamentals for 2025 and believes that estimates can increase as the year unfolds, the analyst tells investors in a research note, adding that while FY25 guidance is likely conservative to start the year, RBC feels better about out-year constant currency estimates than it did at this point last year. The firm notes however that it is also lowering reported estimates for several names due to FX headwinds. For the company, RBC states that it expects slight upside to results as the mix-shift towards subscription continued to track well throughout the year, though it is also neutral heading into earrings as it thinks that demand trends remain relatively stable.