RBC Capital has revised its price target for Commvault (CVLT, Financial), lowering it to $175 from the previous $182. This adjustment comes as part of a comprehensive research note ahead of the company's first-quarter results in the software sector.
The analysis highlights the temporary relief brought about by a 90-day pause on reciprocal tariffs. However, it also points out the ongoing uncertainty in software purchasing cycles, exacerbated by inconsistent tariff discussions. The delay is seen as a temporary measure, not a permanent solution.
In light of these uncertainties, RBC Capital has adjusted its estimates conservatively. The firm maintains a Sector Perform rating on Commvault's shares, indicating a cautious outlook on investment opportunities. Despite this, RBC still recognizes potential buying opportunities, although it acknowledges the challenges of having strong confidence until there is more evident macroeconomic stability.
