Imperial Capital Reiterates Outperform on ZixCorp (ZIXI) as 4Q Results Exceed Expectations
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Rating Summary:
2 Buy, 4 Hold, 0 Sell
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Today's Overall Ratings:
Up: 10 | Down: 9 | New: 10
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Imperial Capital maintained an Outperform rating on Zix Corp. (NASDAQ: ZIXI), and cut the price target to $5.50 (from $6.00), following the company's 4Q results. ZIXI reported 4Q15 revenue of $14.3mn and adjusted EPS of $0.07, exceeding Street revenue estimates of $14.3mn and adjusted EPS estimates of $0.06. Imperial Capital sees a potential upside from broadening deployments of ZixGateway with Cisco Technology (ZCT), given Cisco’s expansive global distribution, and is also looking for incremental contribution from the company’s new strategic partnership with Intel.
Analyst Michael Kim commented, "We are maintaining our Outperform rating on ZIXI shares and lowering our one-year price target to $5.50 from $6 based on our reduced estimates and comparable valuation. Our price target implies potential upside of 45% above recent levels. We believe the company’s core email encryption business is gaining momentum, though we are reducing our FY16 estimates due to higher expected growth investments. We are encouraged by the company’s continued expansion in New First Year Orders (NFYOs), driven by the OEM channel which grew 300% year-over-year (yoy) and constituted about 25% of NFYOs."
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 $3.79 yesterday.
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