Piper Jaffray reiterated a Neutral rating and $4.00 price target on Rocket Fuel (NASDAQ: FUEL) following the company's 1Q earnings report. Rocket Fuel posted non-GAAP revenue of $62.2 million, ahead of the Street's $54.4 million. For Q2, the company guided non-GAAP revenue up to $64-67 million vs the Street's $65 million. Q1 EBITDA was a loss of $2.6 million vs the Street's loss of $12.2 million, and was guided to $0-3 million vs the Street's $1.4 million for Q2.

Analyst Gene Munster commented, "Rocket Fuel beat Q1 revenue by 14% and guided Q2 up 1% as the new management team and CFO began to show their influence on the business. Further, the company disclosed that 16% of GAAP revenue was derived through software sales, which the company terms Platform Solutions. While we believe there are signs that the software transition is taking shape, we maintain our Neutral rating as we see the management team deliver on another quarter or two and look for progress with their agency relationships. We also believe that the company will need to show a sustainable return to non-GAAP revenue growth for investors to get meaningfully more involved. We maintain our Neutral rating and $4 price target."

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Shares of Rocket Fuel closed at $2.69 yesterday.