CommVault Surges to Record High on Takeover SpeculationSarah Frier
CommVault Systems Inc., a provider of data-storage software, surged to a record level amid speculation that the company may be acquired.
The shares jumped 8.6 percent to $84.20 at the close in New York, the highest price since a public market debut in 2006. The stock has gained 21 percent this year, compared with a 12 percent gain for the Standard & Poor’s 400 Midcap Index.
A takeover “makes sense” for any company that wants to gain CommVault’s software, according to Joel Fishbein, an analyst at Lazard Capital Markets in New York. He recommends buying shares with a target price of $95, 24 percent higher than the average of analysts’ estimates compiled by Bloomberg.
“The investment community is catching up to the growth potential of the company,” Fishbein said in an interview today. “They have the best product in the market and it would make a lot of sense for somebody to want to have the asset.”
EMC Corp. and VMware Inc. said yesterday that they are planning a spinoff of Pivotal, a CommVault competitor, in an initial public offering. EMC gained 2.9 percent today to $25.62, the highest level since Dec. 24.
“The industry is validating our strategy judging by competitor moves and the momentum we’re seeing with customers,” said David West, the Oceanport, New Jersey-based company’s head of marketing, in an e-mailed statement.
CommVault provides data and information management software to corporate customers such as Levi Strauss & Co., Adobe Systems Inc. and BT Group Plc. Formed in 1988 as a development group within Bell Labs, CommVault became an independent company eight years later. The software maker sold 12.8 million shares at $14.50 apiece in an initial public offering in September 2006.