After J.P. Morgan and Pacific Crest assigned a Buy rating to Ellie Mae Inc in the last month, the company received another Buy, this time from Oppenheimer. Analyst Brian Schwartz reiterated a Buy rating on Ellie Mae Inc (NYSE: ELLI) today and set a price target of $120. The company’s shares closed yesterday at $90.18.
Schwartz noted:
“Consistent with our 4Q preview, ELLI’s business momentum remains solid, and the 2017 revenue outlook exceeded consensus estimate, which dispels the growth concerns because of the high model predictability/management typically walks up its annual guidance throughout the year. Additionally, the cadence of new technologies/ innovations is accelerating at Ellie Mae, and the bookings and pipeline expansion momentum is outperforming plans, which are positives. On balance, more capex investments (new offices, public cloud, capitalized software, etc.) will be required this year to support the positive business trends. Bottom Line: We think the Ellie Mae story may be the best in software in 2018 driven by potential for an inflecting financial model (i.e., growth reacceleration plus a huge profitability ramp that yields ~$550M in revenue and ~$200M or ~$5/share in EBITDA).”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 19.6% and a 71.9% success rate. Schwartz covers the Technology sector, focusing on stocks such as Palo Alto Networks, Callidus Software, and Ultimate Software.
Currently, the analyst consensus on Ellie Mae Inc is Strong Buy and the average price target is $119.20, representing a 32.2% upside.
In a report issued on January 31, Pacific Crest also maintained a Buy rating on the stock with a $107 price target.
The company has a one year high of $109.99 and a one year low of $59.80. Currently, Ellie Mae Inc has an average volume of 721.3K.
Based on the recent corporate insider activity of 113 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Craig Davis, a Director at ELLI bought 10,666 shares for a total of $14,719.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Ellie Mae, Inc. engages in the provision of software solutions and services for the residential mortgage industry. The firm offers Encompass implementation services, professional consulting services, Encompass education and certification, technical support, and client resource center. Its Encompass software offers customer relationship management; loan processing; underwriting; preparation of mortgage applications, disclosure agreements, and closing documents; funding and closing the loan for the borrower; compliance with regulatory and investor requirements and overall enterprise management that provides one system of record for loans. was founded by Limin Hu and Sigmund Anderman in August 1997 and is headquartered in Pleasanton, CA.
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