Imperial Capital Cut Price Target on Barracuda Networks, Inc. (CUDA) Following F1Q16 Beat
Imperial Capital reiterates an Outperform rating on Barracuda Networks (NYSE: CUDA), and cut the price target to $47.00 (from $52.00), based on comparative valuation following F1Q16. CUDA reported F1Q16 revenue of $78.0mn, exceeding Street estimates of $77.2mn. Adjusted EPS of $0.09 beat Streets $0.08 estimate.
Analyst Michael Kim commented, "We are maintaining our Outperform rating on CUDA shares and lowering our one-year price target to $47 from $52 based on comparative valuation. Our price target is about 20% above the recent share price. Despite F1Q16 results exceeding our estimates and consensus, investors will likely be focused on the company’s flatter than expected billings growth, which was attributable to currency headwinds (1-2 points), greater mix shift to virtual products, delayed closings of larger
storage transactions, and lower storage subscription contract length. Also, while management maintained FY16 guidance, the outlook for F2Q16 implies sequentially lower appliance revenue."
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Shares of Barracuda Networks closed at $39.12 yesterday.