Needham & Company Upgrades Gigamon (GIMO) to Strong Buy; Sees Shares More than Doubling

Needham & Company upgraded Gigamon (NYSE: GIMO) from Buy to Strong Buy with a price target of $34, saying they expect a rapid recovery post Q1 miss and sell-off.

Analyst Alex Henderson commented, "GIMO was cut in half on the 1Q miss. It's selling at just 1.6x EV/Sales and 16.7x EV/E. We expect 20%+ growth and sharply expanding margins. We believe GIMO is a leader in a rapidly growing sector that is becoming increasingly strategic. We think the stock is oversold and we are making it one of only three stocks in our coverage rated Strong BuyGIMO was cut in half on the 1Q miss. It's selling at just 1.6x EV/Sales and 16.7x EV/E. We expect 20%+ growth and sharply expanding margins. We believe GIMO is a leader in a rapidly growing sector that is becoming increasingly strategic. We think the stock is oversold and we are making it one of only three stocks in our coverage rated Strong Buy."

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 $16.08 yesterday.

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