B. Riley Securities recently initiated coverage on N-able (NABL) with a positive rating, drawing fresh attention to the cloud software provider and prompting investors to reassess how the stock’s current valuation lines up with analyst expectations.

N-able’s recent 1-day share price return of 4.96% and 7-day share price return of 2.89% suggest a short-term pickup in interest. However, its 30-day share price return of an 8.51% decline, 90-day share price return of a 17.14% decline, and 1-year total shareholder return of a 29.48% loss point to weaker momentum overall.

If this analyst attention has you rethinking your watchlist, it could be a good moment to widen your search and check out high growth tech and AI stocks.

With N-able trading at a discount to analyst price targets and showing mixed recent returns, the key question now is simple: is the stock being overlooked, or is the market already pricing in the company’s future growth?

Most Popular Narrative: 29.8% Undervalued

Against N-able's last close of $6.77, the most followed narrative points to a fair value of $9.65, putting a spotlight on what assumptions sit underneath that gap.

Accelerating adoption of cloud technologies and the shift toward unified, integrated platforms has increased demand for N-able's end-to-end cyber resilience platform, positioning the company to capture a larger share of the expanding IT management and cybersecurity market, which is likely driving sustained ARR and top-line revenue growth.

Rising volume and sophistication of cyber threats is making security and backup a spending priority for SMBs and mid-market companies, supporting high customer retention rates (noted at ~90% renewals) and promising stable, growing recurring revenue streams and improved net margins.

Curious what kind of revenue path, margin profile, and future earnings multiple are built into that $9.65 view, and how tightly each piece has to hold up?

Result: Fair Value of $9.65 (UNDERVALUED)

However, this hinges on N-able keeping up with larger rivals and executing newer channel and cross-sell efforts, without letting costs run ahead of revenue.

Build Your Own N-able Narrative

If this view does not quite fit with how you see N-able, or you prefer to let the numbers guide you directly, you can build your own version in just a few minutes and Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding N-able.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.