Needham has trimmed its price target on N-Able Inc. to $8.00 from $10.00, but the firm kept its Buy rating on the cybersecurity software company. The adjustment reflects valuation pressure rather than a change in Needham’s assessment of N-Able’s operational execution, the firm said.
Shares are trading at $4.74, close to their 52-week low of $4.63, and have fallen roughly 11% over the past week.
Recent operating results
N-Able closed calendar 2025 with annual recurring revenue up 7.7% in constant currency. The company reported a foreign exchange-neutral net revenue retention rate that remained unchanged at 102%.
Management’s initial revenue guidance for calendar 2026 implies that constant-currency growth should accelerate in the back half of the year. Company commentary links that expected acceleration to stable to improving gross revenue retention and to new product rollouts that management expects will spur adoption among both new and existing customers. At the high end of the guidance range, N-Able’s outlook includes net-new annual recurring revenue growth of 20% year-over-year in constant currency.
Analyst view and market reaction
Needham suggested that some of the recent selling pressure reflects heightened expectations for stronger second-half growth that investors are reluctant to support in the current market environment. The firm also noted confidence in the company’s ability to execute, pointing to continued movement up-market and traction in extended detection and response as supporting factors.
The reduced price target incorporates what Needham described as broader multiple compression across the market rather than a deterioration in the company’s operational outlook.
Quarterly financials and other analyst moves
In fourth-quarter 2025 results, N-Able reported revenue of $130 million, a 12% increase from the prior year. The revenue figure slightly exceeded expectations. Earnings per share, however, came in at $0.06 versus an anticipated $0.10, representing a 40% negative surprise on EPS.
Despite the EPS shortfall, the revenue increase helped create a positive undercurrent among investors. Separately, Scotiabank lowered its price target for N-Able shares from $8.75 to $5.25 while maintaining a Sector Perform rating. Scotiabank characterized N-Able’s top-line and bottom-line results as respectable but unexciting, and noted that the company’s 2026 guidance suggests estimates are unlikely to rise in the near term.
Outlook
The combination of accelerating guidance for the second half of 2026, a steady net revenue retention rate, and product-driven adoption are central to the bull case that underpins Needham’s maintained Buy rating. Offsetting that are market-wide multiple compression dynamics and near-term investor skepticism about back‑loaded growth expectations.
These developments leave a mixed picture: solid revenue growth paired with an EPS miss and cautious analyst revisions that temper immediate upside for the shares.