Needham & Company Cuts Price Target on Imperva (IMPV) Following 3Q

November 4, 2016 8:21 AM EDT
Get Alerts IMPV Hot Sheet
Price: $40.50 -0.25%

Rating Summary:
    19 Buy, 10 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 17 | New: 13
Trade IMPV Now!
Join SI Premium – FREE

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."

For an analyst ratings summary and ratings history on Imperva click here. For more ratings news on Imperva click here.

Shares of Imperva closed at $35.10 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Needham & Company, Earnings

Add Your Comment