J.P. Morgan Raises PT on SolarWinds to $25 (SWI)

J.P. Morgan is out with its report today on Solar Winds (NYSE: SWI), raising its PT from $22 to $25.

In a note to clients, J.P. Morgan writes, "We continue to rate SWI Overweight and are raising our Dec-11 price target to $25 from $22 based on Scenario 3 of our DCF, which takes into account our increased estimates for future cash flow. We forecast a 74% increase in unlevered free cash flow for 2011 followed by a 24% rebound in growth in 2012. For 2013 and 2014, we assume growth of 10%, respectively. Our 2015 forecast is followed by continued robust, though moderating, expected growth reflecting our view of SolarWinds' significant market opportunity relative to its size today."

Shares of SWI closed yesterday at $19.51, down 2.45% from Tuesday's close.