Needham & Company Cuts Price Target on Radware Ltd. (RDWR) Following Soft Guidance

Needham & Company maintained a Buy rating on Radware (NASDAQ: RDWR), and cut the price target to $15.00 (from $18.00), following the company's 4Q earnings report. Radware’s results were a bit ahead of forecast on both Revenues and EPS. However, Needham feels that the guidance on the call and the lack of clarity on the numbers is "disappointing and frustrating".

Analyst Alex Henderson commented, "We went into the quarter concerned about the large exposure to APAC and Latin America and Russia. For a brief moment we were positively surprised by the CY4Q results in the Press Release. However, the guidance on the call and the lack of clarity on the numbers is disappointing and frustrating. Radware insists the order rates are much better than the published numbers suggest as they are seeing a sharper than anticipated shift to Subscription. Radware points out that the increase in the Backlog of Deferred Revenues increased 19% and even if you adjust it for the portion that is multi-year to reflect just the one-year deliverable, it suggests Revenue growth not the reported declines in CY2H and continuing in CY1H16."

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

Shares of Radware closed at $13.08 yesterday.

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