CVLT Buy rating reaffirmed by DA Davidson

What happened: DA Davidson reaffirmed its 'Buy' rating on Commvault Systems (CVLT), despite a 43% year-over-year share price decline. The analyst reduced the price target to $125 from $135. Earlier, CVLT stock surged over 10% following a media report of interest from private equity firms and strategic investors.

Market impact: The software sector, particularly cybersecurity and data management stocks, is affected. CVLT's role in cyber resilience and the apparent bargain valuation attracted potential acquirers, driving the stock price up. The broader software sector decline made CVLT an attractive target.

What to watch next: CVLT's Q2 FY2023 earnings, scheduled for May 25, will provide insights into the company's financial health and growth prospects. Additionally, any updates on the potential acquisition interest or further analyst ratings changes could influence the stock's trajectory.