The Austin-based IT holding company reported 2015 third quarter earnings results yesterday that beat analyst expectations.
SolarWinds reported third quarter earnings of 57 cents per share on revenue of $131.6 million. Analysts expected the company to report earnings of 52 cents per share on revenue of $131.1 million.
Earlier this month, SolarWinds entered into a definitive agreement to be acquired by Silver Lake Partners and ThomaBravo. The solid third quarter may have surprised investors who thought the acquisition was a warning of a difficult quarter, Jefferies added.
Jefferies increased SolarWinds' price target as the deal is likely to go through, the firm said.
Shares of SolarWinds were up 0.29% to $58.05 in midday trading on Friday.
Separately, TheStreet Ratings team rates SOLARWINDS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate SOLARWINDS INC (SWI) 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
You can view the full analysis from the report here: SWI