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NEW YORK (TheStreet) -- Ellie Mae (ELLI) stock price target was increased to $93 from $83 at JMP Securities on Thursday. The firm also maintained its "market outperform" rating.

The Pleasanton, CA-based company is a provider of on-demand software solutions and services for the residential mortgage industry in the U.S.

The higher price target comes after the firm hosted Ellie Mae's CFO Ed Luce for a series of investor meetings yesterday.

"Overall, the tone of business at Ellie Mae sounds exceptional, in our opinion, with the biggest driver simply being the need of mortgage originators to automate their businesses in order to reduce costs and improve profitability," JMP Securities said in an analyst note.

In addition to its increasing shift toward automation, the company seems to be benefiting from a number of tailwinds, including the composite forecast for first quarter mortgage origination, various regulations raising costs for loan originators and "pent-up" housing demand, the firm noted.

Shares of Ellie Mae closed up by 2.38% to $83.93 on Thursday.

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TheStreet Recommends

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.

This is driven by a few notable strengths, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and good cash flow from operations.

The team believes its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: ELLI

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