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Needham & Company Reiterates a 'Buy' on Network Engines (NEI); Healthy Outlook & New Programs Offsetting Avamar Loss

January 27, 2012 9:00 AM EST
NEI Hot Sheet
Rating Summary:
    1 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Needham & Company reiterates a 'Buy' on Network Engines (NASDAQ: NEI). price target raised from $2.00 to $2.50.

Needham analyst says, "Overall, we believe NEI is executing very well as new program ramps continue and the customer base becomes stronger/more diversified. Once investors strip out the impact of EMC’s strategic sourcing decision for Avamar, revenue is growing well into the double digit range. With shares trading at <65% tangible book, we believe valuation is extremely compelling and micro-cap investors should become aggressive."

"Our F2Q forecast becomes $67.5M and $0.03, vs. our prior $60.7M and $0.02. Our F12 forecast becomes $280M and $0.15, vs. prior $265M and $0.12."

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

Shares of Network Engines closed at $1.36 yesterday, with a 52 week range of $0.86-$2.40.


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