Will This Rating Help Nimble Storage (NMBL) Today?

Story updated at 10:25 a.m. to reflect market activity.

NEW YORK (TheStreet) -- UBS initiated its coverage of Nimble Storage (NMBL) Wednesday with a "neutral" rating.

Nimble Storage was gaining 2.6% to $49.64 in morning trading.

The firm set its price target for Nimble at $53. UBS analysts Steven Milunovich and John Roy said they have high growth expectations for the company, with an emphasis on growth instead of profit.

"Nimble has a technology edge that may result in it becoming the most successful of the new generation of storage companies," the analysts wrote. "The company can grow at or above 50% for the next 2-3 years given its small share of a $20bn TAM. There are strong similarities to NetApp's (NTAP) file server success that suggest Nimble could be NetApp 2.0. However, the current stock price adequately reflects the bullish outlook, and we initiate at Neutral."

Must Read: Warren Buffett's 10 Favorite Dividend Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

NMBL ChartNMBL data by YCharts
>

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

Alphabet's Earnings Beat and 4 Other Business Stories You Must Know Tuesday

Alphabet's Earnings Beat and 4 Other Business Stories You Must Know Tuesday

Alphabet Shares Gain as Investors Shrug Off Q1 Google Spending Spree

Alphabet Shares Gain as Investors Shrug Off Q1 Google Spending Spree

SAP Shares Leap After Cloud Business Prompts Full-Year Profit Guidance Hike

SAP Shares Leap After Cloud Business Prompts Full-Year Profit Guidance Hike

Apple Suppliers Slide After European, Asian Chipmakers Echo Smartphone Concerns

Apple Suppliers Slide After European, Asian Chipmakers Echo Smartphone Concerns

Alphabet, Caterpillar, Coca-Cola and Amazon - 5 Things You Must Know

Alphabet, Caterpillar, Coca-Cola and Amazon - 5 Things You Must Know