Needham & Company Reiterates Buy as Radisys Corp's (RSYS) 4Q Results Come In-Line with Preannouncement
Needham & Company reiterated a Buy rating and $4.00 price target on RadiSys (NASDAQ: RSYS) following the company's 4Q earnings report. RSYS reported results of $44MM and $0.08 NG EPS, in line with the Jan 12 preannouncement and at the upper end of prior guidance. Needham believes that RSYS is positioned to continue to deliver solid growth in its SS business and EPS, with its nascent FlowEngine product standing out as the most significant growth driver, and a tough MRF comp. as the most significant risk.
Analyst Richard Valera commented, "RSYS delivered 2015 results that exceeded its guidance and issued an initial 2016 guide that met our bottom line expectations while exceeding on revenue. We think RSYS is positioned to continue to deliver solid growth in its SS business and NG EPS, with its nascent FlowEngine product standing out as the most significant growth driver, and a tough MRF comp. as the most significant risk. Meanwhile its $19MM order for a new telco datcenter product suggests stability, if not growth, for the heretofore rapidly declining ES business. Net, we continue to see shares as inexpensive. We maintain our Buy and PT of $4, or 16x '16 ex-cash EPS."
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Shares of RadiSys closed at $2.42 yesterday.