SolarWinds (NYSE:SWI) On Road to Recovery Says FBR

SolarWinds (NYSE:SWI) struggled throughout 2010, hitting a number of obstacles along the way, some of them self-inflicted. Now it appears management has dealt with most of them and SolarWinds is poised for a profitable 2011.

FBR says, "We believe SolarWinds has done a commendable job fixing its execution issues and broadening its product portfolio over the last six months, a dynamic that should translate into a solid, consistent growth story for 2011 in our opinion. In particular, we are hearing of some improved execution in the field during 4Q as it appears the strong Orion brand awareness is helping fuel upselling/cross-selling opportunities within its still-underpenetrated installed base, as well as help build out the company's international presence. We continue to believe that after a number of speed bumps hit over the last year that SolarWinds is firmly on the road to recovery and should translate into a strong fundamental story (20%-plus growth/50% operating margin) during the course of 2011."

FBR Capital reiterates an "Outperform" rating on SolarWinds (SWI), which closed Tuesday at $20.85, gaining $0.58, or 2.86 percent. FBR boosted their price target on SolarWinds from $21 to $23.