RadiSys (RSYS) PT, Estimates Trimmed at Needham & Company; 2nd-Half Ramps Appears Intact
- Wall St. ends up slightly as focus turns to earnings
- Market Wrap: Dell Makes it Official with EMC; Lilly Hit on Drug Halt; Ferrari IPO Revs up
- Dell to Acquire EMC Corp. (EMC) for $33.15/Share
- Ryder System (R) Cuts Q3, FY15 EPS Outlook
- Twitter (TWTR) Layoffs Could Indicate a Disastrous Quarter is Coming
Needham & Company analyst Richard Valera cut estimates and his price target on RadiSys (NASDAQ: RSYS) to $5.00 (from $6.00) but maintained a Buy rating following mixed Q1 results although a 2nd-half ramp appears intact.
Valera commented, "While we find the incremental weakening of RSYS' audio conferencing business a bit disappointing, and this resulted in a trim to our EPS estimates, we came away from the 1Q report feeling RSYS is continuing to make solid progress in its important MRF business and is well positioned to see a strong ramp in 2H14 earnings driven by increased Software Solutions and benefit from its contract manufacturing restructuring, which could add~300bps of GM. While acknowledging some risk to our steep projected 2H ramp, we believe if RSYS can execute toward it the shares can work materially higher from current levels. Maintain Buy and $5 PT (was $6), or ~18x 2015E EPS."
The firm trims 2014 estimates, now $206MM and $0.07 NG EPS vs $208MM and $0.14 NG EPS. 2015 goes to $207MM/$0.28 from $212M/$0.32.
Shares of RadiSys closed at $3.22 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wedbush Cuts Price Target on Genuine Parts (GPC) to $100 Ahead of 3Q Results
- Citi Upgrades Goldman Sachs (GS) to Buy
- UPDATE: RBC Capital Starts Harris Corp. (HRS) at Outperform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesNeedham & Company, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!