Procera Networks (PKT) PT, Estimates Trimmed at Needham & Company Amid Weak Q1
Needham & Company analyst Alex Henderson lowered estimates and his price target on Procera Networks (NASDAQ: PKT) to $12.00 (from $14.00) following Q1 but maintained a Buy rating. The analyst notes results were weak but promises ramped which may leave investors skeptical.
Henderson comments, "Procera continues to struggle. If the stock wasn't at such a distressed valuation, we would might consider throwing the towel in on it. But at 0.8x EV/Sales on CY15 with only modest top line growth assumed, we find it hard to get that bearish. The 0.75 B-B and the steep ramp implied by the CY2H guidance makes making the numbers look questionable for a company that has already been a serial forecast miss-er, in our view. The strong results at Sandvine and Allot likely make the challenge of turning it around even more difficult. We are grudgingly sticking with our Buy rating but would qualify that: this name is probably best for deep value investors."
The firm lowered FY 2014 EPS from $0.02 to ($0.11) and FY 2015 EPS from $0.34 to $0.25.
Shares of Procera Networks closed at $9.44 yesterday.
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