Piper Jaffray Raises Price Target on Barracuda Networks (CUDA) Following Strong 1Q Results
Piper Jaffray reiterated a Neutral rating on Barracuda Networks (NYSE: CUDA), and raised the price target to $18.00 (from $17.00), following the company's 1Q earnings report. Barracuda reported billings of $98.2M, ahead of the Street's $94.6M estimate. Revenue of $86.7M also beat consensus estimates of $83.9M. Due to higher revenue and operating income, EPS was $0.20.
Analyst Andrew Nowinski commented, "Barracuda reported solid FQ1(May) results, which marks the second consecutive quarter the company has outperformed expectations. While appliance-based revenue declines continue to weigh on the overall growth during the transition to a SaaS model, we note that subscription-based products continue to outperform expectations with solid 20% growth. Moreover, the data backup products appear to be more strategic than we previously thought, as they are a necessary tool to recover from a ransomware attack. We are maintaining a Neutral rating during this transition, though catalysts for growth and the company’s competitive advantages are becoming more evident. N, $18 PT ($17 prior)."
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Shares of Barracuda Networks closed at $15.51 yesterday.