Story updated at 10:25 a.m. to reflect market activity.
Nimble Storage was gaining 2.6% to $49.64 in morning trading.
The firm set its price target for Nimble at $53. UBS analysts Steven Milunovich and John Roy said they have high growth expectations for the company, with an emphasis on growth instead of profit.
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"Nimble has a technology edge that may result in it becoming the most successful of the new generation of storage companies," the analysts wrote. "The company can grow at or above 50% for the next 2-3 years given its small share of a $20bn TAM. There are strong similarities to NetApp's (NTAP) file server success that suggest Nimble could be NetApp 2.0. However, the current stock price adequately reflects the bullish outlook, and we initiate at Neutral."