Needham & Company Reiterates a 'Buy' on RadiSys (RSYS); Recent Stock Weakness Suggest Attractive Opportunity;

Needham & Company reiterates a 'Buy' on RadiSys (NASDAQ: RSYS), PT moved from $9.50 to $10.

Needham analyst says, "Over the last 3 years, the steep revenue and margin decline of Radisys’ Legacy Communications business with NSN has more than offset the strong (albeit less-than-expected) growth in company’s Next-Gen Communications business—the net result being a declining top and bottom line over this period. With the recent purchase of Continuous Computing (CCPU), our preliminary cut at a 2012 forecast suggests this trend should be reversed in 2012 as the growth in both core Next-Gen products and new the CCPU business, should more than offset the declining NSN business, resulting in a least modest top line growth, and the substantially higher margin profile of the CCPU business combined with significant cost synergies will likely drive a sharply higher bottom line. With the stock trading just off its 52 week lows and only about 9x our preliminary 2012 estimate, we think it represents an intriguing value/turnaround play at current levels."

For more ratings news on RadiSys click here and for the rating history of RadiSys click here.

Shares of RadiSys closed at $7.46 yesterday.

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