NEW YORK (TheStreet) -- Shares of Nimble Storage (NMBL) are gaining 19.80% to $8.81 on heavy trading volume on Wednesday afternoon because of the company's better-than-expected fiscal 2017 first quarter financial results, released Tuesday after the closing bell.

The San Jose, CA-based flash storage solutions provider's quarter was helped by the new All Flash Arrays product, which accounted for 12% of total array bookings.

"These AFA deals were substantially larger than Nimble's overall average and helped drive gains with larger enterprises," Oppenheimer analysts said in a note released this morning. "We're encouraged and believe this is a good start to rebuilding confidence with investors."

In a separate note, Pacific Crest analysts pointed out that product growth decelerated to 14%, compared with 34% for the same quarter last year, but All Flash Arrays could drive product growth to more than 20% in the second half of the year.

Both firms, along with BMO Capital Markets, remain conservative on Nimble and maintained ratings equivalent to "hold" on the stock.

"Nimble is still far behind several storage competitors, and it remains to be seen if investment needs to stay elevated to further penetrate this high growth market," BMO said in an analysts note earlier today.

So far today, 5.12 million shares of Nimble Storage have been traded, more than five times its average daily volume of 874,421 shares.

Separately, Nimble Storage has a "sell" rating and a letter grade of D- at TheStreet Ratings because of the company's deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing stock performance and feeble earnings per share growth.

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

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 article's author.

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