Tintri, Inc.: Initiation of Research Coverage

Tuesday, July 25, 2017

William Blair & Company initiated research coverage of Tintri, Inc. (TNTR $6.79). Tintri develops and sells storage systems and software designed to simplify management in virtualized data centers and cloud environments.

Analyst Jason Ader estimated Tintri would generate sales of $160.4 million in fiscal 2018 and $208.3 million in fiscal 2019 (the company’s fiscal year ends in January).

“We believe the cloud-like architecture of Tintri’s technology provides a best-of-both-worlds, on-premises alternative to the public cloud,” Ader said. “Tintri’s VMstore combines the agility and automation of the public cloud with the visibility, control, and cost predictability of a private data center. As the only array vendor with native visibility down to the virtual machine, or VM, level, Tintri offers critical advantages over conventional storage systems, including automation, performance isolation, granular data protection, and real-time and predictive analytics on a per-VM, per-application basis. The result is ease of deployment and management at scale—driving lower operating expenses—and better control over application performance. While its initial success was around server and desktop virtualization, it has expanded into a range of use-cases including DevOps, disaster recovery, and data protection. The company has seen a steady increase in the number of ramped-up direct sales teams and average productivity per team, and we believe Tintri will need continued increases in both of these metrics, along with greater leverage from the channel, to achieve its growth objectives in a crowded storage market.”

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Current Ratings Distribution (as of 6/30/17)

Coverage Universe
Outperform (Buy): 59%
Market Perform (Hold): 34%
Underperform (Sell): 1% 

Inv. Banking Relationships*
Outperform (Buy): 11%
Market Perform (Hold): 3%
Underperform (Sell): 0%

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