NEW YORK (TheStreet) -- Jefferies upgraded CommVault Systems (CVLT) - Get Report to "buy" from "hold" on Wednesday.

The analyst firm lowered its price target for the data and information management company to $45 from $50 despite the upgrade.

Jefferies analysts also lowered their fiscal 2016 and 2017 EPS estimates for the company to 80 cents and $1.43 a share from $1.37 and $1.77 a share, respectively.

The analyst firm said the upgrade was a valuation call based on the CommVault's execution improvements, product cycle, and the possibility of activist investors looking at the company including a possible outright sale.

"Cheap Software stocks don't remain cheap forever, as evidenced by many companies being agitated and even acquired over the past decade," Jefferies analysts wrote. "We see several paths to value realization here and many opportunities for change, both organically and externally inspired."

TheStreet Ratings team rates COMMVAULT SYSTEMS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate COMMVAULT SYSTEMS INC (CVLT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow."

You can view the full analysis from the report here: CVLT Ratings Report

CVLT data by YCharts

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