Piper Jaffray Downgrades Barracuda Networks (CUDA) to Neutral

Piper Jaffray downgraded Barracuda Networks (NYSE: CUDA) from Overweight to Neutral with a price target of $20.00 (from $40.00) after billings missed for the 2nd straight quarter.

Analyst Andrew Nowinski commented, "We are downgrading shares of CUDA to Neutral, following the weaker-than-expected FQ2(Aug) earnings results. This is the second consecutive quarter the company has missed billings expectations and as a result, management lowered the annual billings guidance for FY16. While management blamed the miss on a weak storage market, we note that security billings were just as weak, increasing only high single-digits. With both of the company’s core segments (storage and security) underperforming, we do not believe the cheap valuation is compelling enough to continue recommending shares and therefore we are downgrading our rating to Neutral and lowering our price target to $20 (previously $40)."

The firm cut FY 2016 EPS from $0.40 to $0.34 and FY 2017 EPS from $0.49 to $0.40.

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

Shares of Barracuda Networks closed at $23.55 yesterday.

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