Baird Cuts Price target on Opower (OPWR) to $9; Says Low Guide may Pressure the Stock
Baird reiterated a Neutral rating on Opower (NYSE: OPWR), and cut the price target to $9.00 (from $14.00), following the company's 4Q earnings report. Q4 revenue was $40.5M vs. consensus estimates of $40.0M. Non-GAAP EPS was ($0.14) vs. ($0.15). OPWR expects Q1 revenue of $36.2M-$37.0M, and adjusted EPS of ($0.16)-($0.14), which were lower across the board compared to consensus estimates of $39.8M/($0.12), respectively.
Analyst Ben Kallo commented, "OPWR beat Q4 revenue estimates and met bottom-line estimates, and also ended the year with better-than-expected growth in backlog (up 97% y/y). Despite this, OPWR announced 2016 revenue guidance which was lower than our/consensus estimates, and we think this will pressure the stock. We believe OPWR is well positioned in the U.S. market, but would like to see the market digest the new guidance before becoming more constructive."
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Shares of Opower closed at $8.27 yesterday.