Needham & Company Downgrades Acme Packet (APKT) to 'Hold' on Light Q4 and Weak Guidance

Needham & Company downgraded Acme Packet (NASDAQ: APKT) from Buy to Hold.

Analyst, Richard Valera, said, "Following over 2 solid years of beat and raise performances and 30%-plus y/y growth, Acme has missed 2 quarters in row, and offered forward guidance calling for sharply reduced growth (10%), including a down y/y 1H12. While acknowledging that the sharply lowered 1H12 expectations could set the company up for meet/beat performances in the next quarter or so (which could give shares a NT bounce), given the lack of visibility to achieving the sharp 2H12 ramp implied in the company’s modest 10% growth target in 2012, we find it difficult to justify a valuation much above the $27-28 aftermarket price, which is equivalent 17-18x our cash-adjusted C2013 EPS."

"Our 2012 estimates are reduced to $338MM/$0.98 NG EPS from $346MM/$1.11. Our 2013 estimates are reduced to $403MM (19% y/y growth) and $1.28 NG EPS from $408MM/$1.40."

For an analyst ratings summary and ratings history on Acme Packet click here. For more ratings news on Acme Packet click here.

Shares of Acme Packet closed at $30.89 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Needham Reiterates Buy Rating on Amazon.com (AMZN), Raises Estimates
• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• Needham & Company reiterates Buy rating on Amazon (AMZN), raises estimates