Rosenblatt Upgrades NETGEAR (NTGR) to Buy
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Rosenblatt upgraded NETGEAR (NASDAQ: NTGR) from Neutral to Buy with a price target of $61.00.
Analyst Kirk Adams commented, "Netgear reported strong earnings and revenues for 3Q16. Their retail business grew 18% yoy and the commercial business was up nearly 13% in the quarter. This led to revenues of $338.5M and earnings of $0.76, both well above street expectations. They guided between $340-$355M, a little short of street expectations, but the company said they were only expecting $55M of service provider revenue in 4Q17. This means that retail will be stronger than expected and margins will be slightly better. EMEA and APAC had excellent quarters as well. Free Cash Flow generation was strong at over $44M in the quarter. We do believe that Netgear has a great opportunity to continue to grow market share in their current markets and be successful in new IoT markets."
He added, "We are moving back to a Buy rating with a one-year price target of $61 based on 18.2x P/E of FY2017 earnings estimate of $3.35. We are giving Netgear’s valuation the benefit of higher gross and operating margins, excellent revenue growth in both their retail and commercial businesses and tremendous cash flow characteristics. We believe that new products and continued excellent execution will move shares higher. We lowered our rating to Neutral in late June as the stock ran up near $50 and we became concerned about valuation, but two excellent quarterly reports has motivated us to recommend buying these shares again."
Shares of NETGEAR closed at $54.40 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Oppenheimer Cuts Price Target on Workday (WDAY) Following 3Q; Reiterates Outperform
- Drexel Hamilton Raises Price Target on Workday (WDAY) Following 3Q Beat
- Mizuho Securities Adjusts Estimates Following Gap, Inc. (GPS) Comp Miss
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Upgrades
Related EntitiesEarnings, Rosenblatt
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!