Oppenheimer raised its price target for Ellie Mae (ELLI) to $45 from $40 on the strength of three growth factors, an analysis report from Briefing.com said.   

The investment company asserted that Ellie Mae’s multiple product cycle catalysts side of the story, along with TILA-RESPA, should drive platform sales which help drive associated network transactions and services, and higher average revenue per user.

The note said Ellie’s stock could benefit from three things:

  1. Robust growth likely to build next year as TILA-RESPA makes Encompass a mainstream versus missionary sale
  2. Broadening product line gaining market traction
  3. More upmarket wins

In its third-quarter earnings, Ellie Mae reported revenue of $42.8 million, compared to $33 million in the third quarter 2013.

“Revenue grew 30% over last year’s third quarter to a record $42.8 million, despite a 27% decline in industry mortgage origination volume, and our active user base crossed the 100,000 mark for the first time,” said Sig Anderman, CEO of Ellie Mae.  

“These results validate the strength of our flagship Encompass Mortgage Management SaaS offering, as more and more lenders embrace our all-in-one solution to meet their ever-increasing needs for loan quality, regulatory compliance and operating efficiency,” Anderman said.