Imperial Capital Raises Price Target on ZixCorp (ZIXI) Following 2Q15 Results

Imperial Capital maintained an Outperform rating on Zix Corp. (NASDAQ: ZIXI), and raised the price target to $6.00 (from $5.50), following 2Q15 results. ZIXI reported 2Q15 revenue of $13.3mn, compared with Street estimates of $13.4mn. Adjusted EPS $0.04 was in-line with consensus.

Analyst Michael Kim commented, "We are maintaining our Outperform rating on ZIXI shares and raising our one-year price target to $6 from $5.50 based on improving visibility. Our price target is about 17% above the recent share price. We believe ZIXI could capitalize on multiple growth drivers over the coming quarters, including the Cisco partnership, ZixDLP, ZixOne, and Google Apps Message Encryption (GAME). We also expect finalization of a new sales partnership agreement with a major security vendor shortly, which could significantly expand the company’s sales coverage.
Through these partnerships, we believe ZIXI could gain market share in the core email encryption market, with particular growth potential from international opportunities. We also favorably view the announced CEO transition, as this change in leadership offers a positive opportunity to hire a dynamic executive leader with a proven track record of growth. We see potential changes in strategic direction and opportunities to drive higher shareholder value."

For an analyst ratings summary and ratings history on Zix Corp. click here. For more ratings news on Zix Corp. click here.

Shares of Zix Corp. closed at $5.14 yesterday.

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