Needham & Company Maintains a 'Buy' on Acme Packet (APKT); Bad News/Good News as Acme Pre-Announces 3Q Miss, But Also Huge AT&T Win
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Price: $29.24 --0%
Rating Summary:
3 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Acme Packet (NASDAQ: APKT) price target lowered from $75 to $52.
Needham analyst says, "APKT is a pure-play on the powerful secular trend towards IP networks and services by carriers and enterprises. We expect its position as the leading provider of session border controllers (SBC) that enable IP-based services should enable it to see strong growth for the next several years. That said, the company’s miss last night on an apparent slip of the largest order in the company’s history demonstrates both the opportunity the company faces, as well as potential risks of trying manage the timing of such large orders. While acknowledging a more challenging macro environment, which may serve to limit the type of upside to guidance investors had come to expect from Acme, we think the recent pullback in the shares (~55% off its recent highs in the after market) likely accounts for this diminished upside potential."
"We are adjusting our 3Q/4Q estimates in line with guidance. Our 2011 estimates come down slightly to $316.4MM/$1.14 from $319.4MM/$1.16. Our 2012 estimates are also trimmed slightly to $404.7MM/$1.47 from $406MM/$1.48."
For more ratings news on Acme Packet click here and for the rating history of Acme Packet click here.
Shares of Acme Packet closed at $42.83 yesterday.
Needham analyst says, "APKT is a pure-play on the powerful secular trend towards IP networks and services by carriers and enterprises. We expect its position as the leading provider of session border controllers (SBC) that enable IP-based services should enable it to see strong growth for the next several years. That said, the company’s miss last night on an apparent slip of the largest order in the company’s history demonstrates both the opportunity the company faces, as well as potential risks of trying manage the timing of such large orders. While acknowledging a more challenging macro environment, which may serve to limit the type of upside to guidance investors had come to expect from Acme, we think the recent pullback in the shares (~55% off its recent highs in the after market) likely accounts for this diminished upside potential."
"We are adjusting our 3Q/4Q estimates in line with guidance. Our 2011 estimates come down slightly to $316.4MM/$1.14 from $319.4MM/$1.16. Our 2012 estimates are also trimmed slightly to $404.7MM/$1.47 from $406MM/$1.48."
For more ratings news on Acme Packet click here and for the rating history of Acme Packet click here.
Shares of Acme Packet closed at $42.83 yesterday.
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