N-able (NABL) just announced the public preview of its N-central unified endpoint management solution, which now supports CMMC 2.0 controls. The aim is to help managed service providers and IT teams stay aligned with Department of Defense cybersecurity standards.

Following this significant CMMC 2.0-ready launch, N-able's share price has shown some short-term recovery with a 2.39% one-day and 1.39% seven-day return. However, this comes against a backdrop of a 10.34% 30-day share price decline and a sharper 29.39% total shareholder return decrease over the past year. This signals that while there is recent momentum, long-term performance remains under pressure as the market weighs the company's evolving opportunity in cyber resilience.

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With shares trading more than 26 percent below analyst price targets despite steady revenue growth, the question remains: Is N-able a bargain with upside as it pivots deeper into defense-driven cybersecurity, or is future growth already baked into its valuation?

Most Popular Narrative: 22.9% Undervalued

At $7.28 per share, N-able trades well below the fair value estimated by the most widely followed narrative. This suggests significant upside from current prices. As market attention shifts to the company’s earnings outlook and margin story, a key perspective stands out.

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. This is positioning the company to capture a larger share of the expanding IT management and cybersecurity market, and may drive sustained ARR and top-line revenue growth. The 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.

What’s behind this value call? There is a story of robust recurring sales, ambitious margin targets, and big profit expectations woven into the fair value math. Could these bullish assumptions signal a turnaround no one else sees coming? Dive in for a breakdown of the key projections driving that number.

Result: Fair Value of $9.44 (UNDERVALUED)

However, industry consolidation and rapid automation adoption could squeeze N-able’s margins and customer base, which could quickly change the outlook for future growth.

Build Your Own N-able Narrative

If you see things differently or want to dig into the details on your own, it’s quick and easy to assemble your own perspective in just minutes, then Do it your way

A good starting point is our analysis highlighting 3 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.