Dougherty & Co Upgrades Aerohive Networks (HIVE) to Buy
Dougherty & Co upgraded Aerohive Networks (NYSE: HIVE) from Neutral to Buy with a price target of $8.00. Analyst Catharine Trebnick thinks the company is showing solid signs of stabilization, and she noted recent agreements with Dell and Apple.
"Aerohive Networks delivered revenue of $25.8M in line with their negative pre-announcement. Revenue short fall was attributed to primarily the pause in E-Rate spending and operational challenge with their third party logistics provider. The company has announced two top brand reseller relationships, Dell and Apple," said Trebnick.
"We believe Aerohive is showing solid signs of stabilization and progress which is clearly good news. The company recently appointed Tom Wilburn as SVP World Wide Sales is clearly sign sales execution is on the rebound. In terms of progress, the Dell and Apple reseller arrangements indicate they are working diligently to expand their market share. We expect improved sales execution and the reseller partnerships will drive upside to our 2016 outlook," added the analyst.
Shares of Aerohive Networks closed at $6.11 yesterday.