Deutsche Cuts Price Target on Acme Packet (APKT) Following New Guidance, Reaffirms Buy Rating
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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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Deutsche Bank is reiterating its Buy rating on shares of Acme Packet (NASDAQ: APKT), but is reducing its price target from $60 to $50.
Following yesterdays close, the company cut its Q3 guidance to $70 million in revenue and EPS of $0.20-$0.22 while reaffirming its FY11 outlook. The firm notes that the reduction in guidance is due to a delay in the VoIP/SBC platform deal at AT&T (NYSE: T).
Management noted that they have been verbally awarded the deal and anticipate that it will close in October. The deal is valued in the high teens of millions of dollars with over 5 million subscribers initially.
The long-term story behind the company lies with weather management is able to transform the business from its $300 million run-rate plus, to a roughly $1 billion level within the next few years.
An analyst at Deutsche comments, "Key growth drivers we see for Acme in CY11/12+ are: expansion in enterprise SIP trunking and carrier VoIP peering opportunities; VoIP/SBC platform buildout opportunity at AT&T and Verizon; and, IP session recording and Application Controllers."
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.
Following yesterdays close, the company cut its Q3 guidance to $70 million in revenue and EPS of $0.20-$0.22 while reaffirming its FY11 outlook. The firm notes that the reduction in guidance is due to a delay in the VoIP/SBC platform deal at AT&T (NYSE: T).
Management noted that they have been verbally awarded the deal and anticipate that it will close in October. The deal is valued in the high teens of millions of dollars with over 5 million subscribers initially.
The long-term story behind the company lies with weather management is able to transform the business from its $300 million run-rate plus, to a roughly $1 billion level within the next few years.
An analyst at Deutsche comments, "Key growth drivers we see for Acme in CY11/12+ are: expansion in enterprise SIP trunking and carrier VoIP peering opportunities; VoIP/SBC platform buildout opportunity at AT&T and Verizon; and, IP session recording and Application Controllers."
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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