William Blair Starts Barracuda Networks (CUDA) at Outperform

December 2, 2013 6:42 AM EST
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Rating Summary:
    14 Buy, 7 Hold, 1 Sell

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    Up: 13 | Down: 22 | New: 54
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William Blair initiates coverage on Barracuda Networks (NYSE: CUDA) with a Outperform rating.

Analyst Jason Ader calls Barracuda Networks a "Business Model Story'. "Barracuda Networks uniqueness stems from its business model rather than any specific product," he states. "The company targets small and midsize business (SMB) customers and offers easy-to-use IT products in high-margin segments, with a powerful branding capability, a high-velocity sales engine, and proactive customer support."

The analyst also highlights a positive mix shift is underway with the company diversifying away from the maturing content security segment (about 3% growth) toward the higher growth storage segment (about 40% growth).

Cross-selling should fuel acceleration in growth and the company has a strong financial profile with operating leverage on the way, the analyst also states.

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

Shares of Barracuda Networks closed at $20.70 yesterday.

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