CVLT - Commvault: Likely To Make You More Money Than Many High Flyers

• Commvault reported the best quarter in its history and guided up 4Q (March). Management exuded confidence in its growth prospects and position within the industry with its cloud-delivered portfolio.
• Commvault's extensive and modern platform and deployment options (public cloud, hybrid, and on-prem) continue to drive growth, as enterprises are moving to the cloud rapidly, driven by digital transformation.
• The company is taking the battle to heavily funded private companies such as Rubric and Cohesity by rapid customer additions, out-executing them by offering integrated, well-thought-out offerings.
• Commvault is expanding the buybacks in the next 12 months, which is likely to drive the stock higher. Commvault expects to deploy ~$300 million in a share buyback program.
• Given improving execution, reasonable valuation, and opportunity to gain share and share buybacks, we believe CVLT has favorable risk/reward and is, therefore, a buy.

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