10 Best Information Technology Services Stocks to Buy Right Now

6. N-able, Inc. (NYSE:NABL)

Analyst Upside: 20.87%

No. of Hedge Fund Holders: 27

N-able, Inc. (NYSE:NABL) is a cloud-based IT management and security solutions provider for managed service providers (MSPs). The company’s products improve the efficiency and effectiveness of IT service delivery, such as remote monitoring and management, backup and disaster recovery, and cybersecurity solutions.

The company’s recently launched Adlumin Managed Detection and Response (MDR) solution at Ventnor City has already demonstrated its effectiveness, successfully preventing a cyber-attack within six hours of deployment. The AI-powered solution was able to protect the city’s police department from attempted intrusion. The MDR solution supports quick threat mitigation, with both automated and human response capabilities, and uses AI to identify threats.

On January 21, RBC Capital analyst Matthew Hedberg downgraded the price target on NABL shares from $15 to $12 and kept an Outperform rating on the stock. The analyst sees N-able, Inc. (NYSE:NABL) to have a conservative to start to 2025 as things will get better moving forward. Hedberg expects in-line to slightly better results following a solid Q3 2024 and the mid-quarter acquisition of Adlumin, which resulted in updated guidance for Q4 2024. The company expects its Q4 revenue to be in the range of $111.5 to $113 million, representing 3% to 4% year-over-year growth.

Conestoga Capital Advisors stated the following regarding N-able, Inc. (NYSE:NABL) in its Q4 2024 investor letter:

“Founded in 2000, N-able, Inc. (NYSE:NABL) is a leading software provider to managed service providers (MSPs), with over 25,000 customers. MSPs are essentially outsourced IT departments that, in turn, sell these tools downstream to small- to medium-sized businesses of all kinds. NABL is a 100% recurring revenue business that provides software tools, including security, data protection, and remote monitoring, to its MSP customers. NABL has a nearly $40 billion total addressable market, with durable tailwinds as the complexity of security, cloud migrations, and data storage increase.”