Needham & Company Downgrades Imperva (IMPV) to Hold

Needham & Company downgraded Imperva (NYSE: IMPV) from Buy to Hold.

Analyst Scott Zeller commented, "MarQ was in-line for Imperva on revenues and loss per share - surprising given the favorable security spending climate. In field discussions, we have heard IMPV has strong momentum for WAF and Database Security, and IMPV raised CY16 well above consensus last quarter. However, two issues blunted MarQ and are pressuring CY16, (a) the “ease of sale” of Database and Incapsula distracted sales from Web App Firewall deals, and (b) EMEA sales disappointed, leading to a mgmt. change. While we do not believe IMPV is seeing tougher competition, we are concerned that license growth is anemic. Further, IMPV’s inching-up of CY16 and back-end loading the year raises caution. Lowering estimates, downgrade to HOLD. IMPV closed near $45.47 and traded down to $36.90 in aftermarket, which is 3.5x EV/CY16(e) revenue and 2.8x EV/CY17(e) revenue."

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 $45.47 yesterday.

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