Gigamon (GIMO) Issue 'Isolated', Buy on Weakness - Needham & Company
- Top 10 News for 10/5 - 10/9: Twitter Names New CEO; Fed Cautious on Hike Amid Global Slowdown; GE Gets New Activist
- Wall Street ekes out small gain to cap strongest week of year
- DSV to Acquire UTi Worldwide (UTIW) in $1.35B Deal
- SolarWinds (SWI) Commences Review of Strategic Alternatives
- Barclays Downgrades Tesla Motors (TSLA) to Underweight
Needham & Company analyst Alex Henderson reiterated a Buy rating and $44 price target on Gigamon (NYSE: GIMO), which is down 24.6% pre-open to $19.75 following the company's Q1 warning. Henderson thinks the issue isolated and they recommend buying on the weakness.
Henderson comments, "Gigamon Pre-Release looks to us like an isolated issue. This looks like a one-off problem, and we do not expect a multi-quarter fix. Reiterating Buy. Gigamon pre-released, announcing they were coming in below the Revenue guidance range at $31-31.5 million versus guidance of $34-35 million. Gigamon cited a single customer order for the vast majority of the shortfall, though they did note some additional deals also slipped out of the quarter. We believe this is a one-time event, and we expect Gigamon to be right on track in CY2Q, 2H and CY15."
The firm cut FY 2014 EPS from $0.50 to $0.40 and FY 2015 EPS was maintained at $0.75.
Shares of Gigamon closed at $26.20 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Needham & Company Cuts Price Target on Cypress Semiconductor (CY) to $17 Ahead of 3Q15 Earnings Release
- Needham & Company Cuts Price Target on Lam Research (LRCX) Following Industry Report
- Needham & Company Upgrades Infinera Corp. (INFN) to Buy
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesNeedham & Company
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!