Needham & Company Downgrades Acme Packet (APKT) to 'Hold' on Light Q4 and Weak Guidance
Tweet Send to a FriendGet Alerts APKT Hot Sheet
Price: $29.24 --0%
Rating Summary:
6 Buy, 15 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 9 | Down: 16 | New: 5
Rating Summary:
6 Buy, 15 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 9 | Down: 16 | New: 5
Trade APKT Now!
Needham & Company downgraded Acme Packet (NASDAQ: APKT) from Buy to Hold.
Analyst, Richard Valera, said, "Following over 2 solid years of beat and raise performances and 30%-plus y/y growth, Acme has missed 2 quarters in row, and offered forward guidance calling for sharply reduced growth (10%), including a down y/y 1H12. While acknowledging that the sharply lowered 1H12 expectations could set the company up for meet/beat performances in the next quarter or so (which could give shares a NT bounce), given the lack of visibility to achieving the sharp 2H12 ramp implied in the company’s modest 10% growth target in 2012, we find it difficult to justify a valuation much above the $27-28 aftermarket price, which is equivalent 17-18x our cash-adjusted C2013 EPS."
"Our 2012 estimates are reduced to $338MM/$0.98 NG EPS from $346MM/$1.11. Our 2013 estimates are reduced to $403MM (19% y/y growth) and $1.28 NG EPS from $408MM/$1.40."
For an analyst ratings summary and ratings history on Acme Packet click here. For more ratings news on Acme Packet click here.
Shares of Acme Packet closed at $30.89 yesterday, with a 52 week range of $25.20-$84.50.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, Richard Valera, said, "Following over 2 solid years of beat and raise performances and 30%-plus y/y growth, Acme has missed 2 quarters in row, and offered forward guidance calling for sharply reduced growth (10%), including a down y/y 1H12. While acknowledging that the sharply lowered 1H12 expectations could set the company up for meet/beat performances in the next quarter or so (which could give shares a NT bounce), given the lack of visibility to achieving the sharp 2H12 ramp implied in the company’s modest 10% growth target in 2012, we find it difficult to justify a valuation much above the $27-28 aftermarket price, which is equivalent 17-18x our cash-adjusted C2013 EPS."
"Our 2012 estimates are reduced to $338MM/$0.98 NG EPS from $346MM/$1.11. Our 2013 estimates are reduced to $403MM (19% y/y growth) and $1.28 NG EPS from $408MM/$1.40."
For an analyst ratings summary and ratings history on Acme Packet click here. For more ratings news on Acme Packet click here.
Shares of Acme Packet closed at $30.89 yesterday, with a 52 week range of $25.20-$84.50.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Goldman Sachs Downgrades Thoratec (THOR) to Neutral
- Jefferies Downgrades Limited Brands (LTD) to Underperform; Sees 21% Downside
- Goldman Sachs Downgrades Deere (DE) to Sell, Sees 5% Downside
Create E-mail Alert Related Categories
DowngradesRelated Entities
Needham & Company
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
