Needham & Company Reiterates Buy on Gigamon, Inc. (GIMO) Following Call with Management

Needham & Company reiterated a Buy rating and $58.00 price target on Gigamon, Inc. (NYSE: GIMO) following a call with management. Needham believes that Gigamon is likely to strongly beat the CY4Q16 quarter and that this should result in estimate increases for CY17 and beyond.

Analyst Alex Henderson commented, "It's all good. Gigamon looks to be setting up well for the next 12-24 months. We believe Gigamon investors can look forward to a sharp expansion in Service Provider on the heels of the major Verizon win and continued expansion at AT&T and T-Mobile. We anticipate a rebound in Europe as the new sales head revitalizes growth into CY2H, and we expect strong growth in cloud as the AWS platform starts to ramp in CY2H17 and into CY18. We expect a strong CY4Q with results solidly ahead of forecast resulting in estimate increases. The comparisons for CY1Q are tough, with last year's 14-week Q, a big T-Mobile order and strong Federal and CY2Q with a large Service Provider order and exceptional Federal have some lumpiness in them so we expect more muted growth in CY1H with accelerating growth in CY2H17 and into CY18."

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

Shares of Gigamon closed at $48.50 yesterday.

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