Wedbush Upgrades Acme Packet (APKT) to Outperform; Q3 Hiccup and Major Win at AT&T Provides Compelling Opportunity
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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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Wedbush upgraded Acme Packet (NASDAQ: APKT) from Neutral to Outperform, but price target lowered from $70 to $45.
Wedbush analyst says, "Our upgrade is based on the following factors: 1) Announced win with AT&T (NYSE: T) gives Acme entrenched status in the two largest North American service providers and could provide material revenue over the next�several years, driven by the network migration to LTE. 2) Recent decline in the share price provides a compelling entry point as valuation levels have now reached reasonable levels. 3) Demand environment is stable in the SBC market as European revenue came in ahead of plan. And 4) Acme has leadership status in the fast-growing session border controller market, which we think was further bolstered by its marquee win at AT&T. While we continue to have concerns regarding uncertainty in the spending environment and some signs of competition, we think the decline in the share price, lowered expectations and the announcement of a major win which can easily provide further upside in the coming quarters, offsets some of the potential challenges."
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.
Wedbush analyst says, "Our upgrade is based on the following factors: 1) Announced win with AT&T (NYSE: T) gives Acme entrenched status in the two largest North American service providers and could provide material revenue over the next�several years, driven by the network migration to LTE. 2) Recent decline in the share price provides a compelling entry point as valuation levels have now reached reasonable levels. 3) Demand environment is stable in the SBC market as European revenue came in ahead of plan. And 4) Acme has leadership status in the fast-growing session border controller market, which we think was further bolstered by its marquee win at AT&T. While we continue to have concerns regarding uncertainty in the spending environment and some signs of competition, we think the decline in the share price, lowered expectations and the announcement of a major win which can easily provide further upside in the coming quarters, offsets some of the potential challenges."
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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