Imperial Capital Raises Price Target on Proofpoint (PFPT) to $83 Following 2Q Beat

Imperial Capital reiterated an Outperform rating on Proofpoint (NASDAQ: PFPT), and raised the price target to $83.00 (from $69.00), following the company's 2Q earnings report. PFPT reported 2Q16 revenue of $89.9mn and adjusted EPS of $0.06, exceeding Street revenue estimates of $84.3mn and EPS estimates of ($0.07).

Analyst Michael Kim commented, "We are maintaining our Outperform rating and raising our one-year price target to $83 from $69 based on our higher outlook. Our price target implies potential upside of about 13% above recent levels. PFPT continued to exceed our growth expectations in 2Q16, capitalizing on the migration to cloud-based solutions and share gains against legacy vendors. The company also demonstrated early operating leverage ahead of our expectations and consensus, attaining positive adjusted EPS and EBITDA upside nearly equivalent to revenue outperformance. We think management’s initial FY17 revenue guidance appears relatively conservative, given multiple growth drivers, including migrations to Office 365, conversions of larger McAfee customers, higher international expansion, and ramping adoption of emerging products."

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

Shares of Proofpoint closed at $73.31 yesterday.

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