Time to Buy Procera Networks (PKT), Not Sell - Needham & Company

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Needham & Company cuts estimates and its price target on Procera Networks (NASDAQ: PKT) from $25 to $20 but maintained a Buy rating saying the company is just experiencing growing pains and is a victim of its own success.

The analyst comments, "The holy grail for most network equipment companies is winning big Tier 1 Service Provider contracts. The biggest challenge to a small company is, ironically, winning and succeeding with big Tier 1 contracts. Tier 1 Service Providers require more support and installation services and have many more acceptance criteria than smaller service providers. We see Procera as a victim of its own success, but this is a quality problem. More importantly, in our opinion this is not the time to sell the stock but instead the time to Buy these shares."

The firm cut FY13 EPS from $0.50 to $0.26 and FY14 from $0.74 to $0.60.

For an analyst ratings summary and ratings history on Procera Networks click here. For more ratings news on Procera Networks click here.

Shares of Procera Networks closed at $11.70 yesterday, with a 52 week range of $11.68-$25.99.

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