Needham & Company Cuts Price Target on Imperva (IMPV) Following 3Q
- Wall Street turns defensive on Trump's protectionist stance
- Aetna's (AET) Humana (HUM) Takeover Blocked by Judge as Anticompetative
- Trump signs order withdrawing U.S. from Trans-Pacific trade deal
- Qualcomm (QCOM) Thrashed as Apple (AAPL) Lawsuit Threatens Licensing Business Model
- McDonald's (MCD) Tops Q4 EPS by 3c
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Needham & Company maintained a Buy rating on Imperva (NYSE: IMPV), and cut the price target to $43.00 (from $64.00), following the company's 3Q earnings report. After the material guide-down last quarter, the results for IMPV were a solid “beat”, with $68.4m and $0.08 EPS well above $63.2m and ($0.16) loss per share consensus. CY16 was raised by +6.5m at the midpoint, and CY16 loss per share was narrowed by $0.43 to a loss range of (0.38) to (0.35) LPS.
Analyst Scott Zeller commented, "IMPV will “go it alone” after officially ending the strategic review, and has announced a restructuring to align expenses with growth in the 20% range. News of a sale process peaked shares in early Oct near $53, and shares have fallen to near $35 in late Oct on reports the process was halted. At $35, we believe shares have reverted back to trading on fundamentals. While fundamentals have shown stabilization, mgmt remains cautious; guidance was raised incrementally for CY16. CY17 broad strokes suggest “at least 20%” revenue growth, in-line with consensus. We believe shares may grind higher in CY17 off a lowered bar as IT security spending on compliance remains solid. Trimming CY17 estimates, lowering PT to $43 (4x EV/CY17 revenue), appropriate in our view for a 20-25% revenue grower in network security. Maintain BUY."
Shares of Imperva closed at $35.10 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Procter & Gamble (PG) PT Raised to $96 at UBS Following 2Q Report
- UPDATE: Wells Fargo Downgrades Verizon Communications (VZ) to Market Perform
- Bristol-Myers Squibb Co. (BMY) PT Lowered to $47 at BMO Capital; See Much Uncertainty and Increased Risk
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesNeedham & Company, Earnings
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!