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N-able (NABL) recently rolled out expanded AI capabilities across endpoint management, security operations, and data protection, a move aimed at helping small and mid-sized customers handle more complex and faster-moving cyberthreats.
For you as an investor, this AI push raises a few key questions. How central are these features to N-able’s core platform, what problems are they trying to solve for managed service providers, and how might that tie into the company’s existing scale and financial profile?
See our latest analysis for N-able.
Despite the AI rollout and the upcoming 2025 results call on February 19, N-able’s share price has been weak. The 30-day share price return is 23.26% and the 1-year total shareholder return is 42.34%, suggesting sentiment has softened recently.
If N-able’s AI push has caught your attention, it may be worth widening your lens to other security and automation names through our screener of 56 profitable AI stocks that aren’t just burning cash.
With N-able trading at US$5.61 and sitting at a discount to both analyst targets and some intrinsic value estimates, you now need to ask yourself: is this a potential opportunity, or is the market already baking in future growth?
At a last close of $5.61 versus a most-followed fair value of $9.65, the current price sits well below what this narrative is assuming, which raises clear questions about the growth and profitability path being modeled.
Analysts are assuming N-able’s revenue will grow by 8.7% annually over the next 3 years.
Read the complete narrative.
To understand what could turn today’s small profit base into the earnings power behind that higher fair value, it helps to focus on the key drivers: revenue compounding, margin lift, and the future earnings multiple that underpin this narrative. The full narrative lays out the exact path it is assuming.
Result: Fair Value of $9.65 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this hinges on MSP consolidation and on larger cloud providers not squeezing N-able’s customer base, as well as on AI tools avoiding commoditisation that pressures pricing and margins.
Find out about the key risks to this N-able narrative.
If you see the data differently or prefer to test your own assumptions, you can build a complete N-able narrative yourself in a few minutes: 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.
Companies discussed in this article include NABL.
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