Story updated at 9:50 a.m. to reflect market activity.
Nimble Storage fell 1.5% to $34.48 in morning trading.
The firm set a price target of $35 for the company. Analysts said that despite Nimble Storage being well-positioned for strong growth, the company's current valuation is too high.
"Nimble Storage, Inc. provides its customers with data storage platform. The Company focuses on research and development of its technology platform, developing new products and enhancing its cloud-based management services. The Company has designed and sold a flash-optimized hybrid storage platform. The Company serves a broad array of enterprises and cloud-based service providers, and its software and storage systems handle mainstream applications, including virtual desktops, databases, email, collaboration and analytics. In April 2013, the Company launched InfoSight. It offers support and maintenance services. As of July 31, 2013, the Company had over 1,750 end-customers. Its end-customers span a range of industries, such as cloud-based service providers, education, financial services, healthcare, manufacturing, state and local government and technology."