To rewind a bit, back on June 29 TNTR slashed the size of its IPO, reducing the expected price range to $7-$8 from $10.50-$12.50. Then, on June 30, the 8.6 million share deal priced at the low end of that new range, ultimately raising about 40% less than originally hoped for.
Things didn't improve much when it opened for trading, either. After opening about flat on its IPO day, the stock was trading below the $6.50 mark just a few days later. Since then, shares have chopped around in the $6.80-$7.10, unable to muster any positive momentum. But, with today's bullish initiations, perhaps that is the catalyst the stock needs to turn the tide.
Before delving into those initiations, we wanted to provide a little background on what the company does. As noted above, it is a cloud software developer. More specifically, it is a developer of an enterprise cloud that provides public cloud capabilities. From a general sense, the conventional IT model, which has been constrained by siloed, costly and inflexible infrastructure, is giving way to cloud architectures. Cloud Computing can be Public (Amazon, Azure, Rackspace), where the focus is providing the lowest cost shared computing service where you pay for services as you need them (pay as you go), and there is Private Cloud Computing, where the entire cloud infrastructure (servers, storage, network) is dedicated to a single company and is behind the company firewall.
In simple terms, TNTR provides large companies with an enterprise cloud platform that offers public cloud capabilities inside their own data centers that can also connect to public cloud services. Its enterprise cloud platform combines cloud management software, web services and a range of all-flash storage systems. It sells storage appliances intended for virtual machines and software containers.
TNTR's enterprise cloud platform not only delivers many of the benefits of public cloud infrastructure, but also gives organizations the control and functionality they need to run both enterprise and cloud-native applications in their own private cloud. Organizations use TNTR's platform as a foundation for their own private clouds.
Now, taking a look at today's initiations, there are a couple that particularly stand out. For instance, Needham seems to be one of the most bullish on the stock, assigning it a Buy rating with a $15 target -- about 115% higher from last night's close. The firm says it finds the shares attractive for three reasons: they believe the company has a truly differentiated technology, it has a team with a strong track record of value creation, and the stock has an extraordinarily low valuation based on several methodologies.
Another bullish initiation that stands out is BofA Merrill's Buy and $16 rating, which is a whopping 130% higher from here. One of the few cautious initiations was Piper Jaffray, giving the stock a Neutral. However, the firm also put an $8.50 target on it, which is still 22% higher from yesterday's close.
Wrapping up, the positive news provides a much needed shot in the arm for TNTR. With the expected gains this morning, shares are on track to push above both its $7 IPO price and $7.15 opening price from June 30. In terms of changing the trajectory of this recent IPO, that is a good starting point.