Oppenheimer Remains Bullish on Imperva (IMPV) Following a Disappointing 2Q Pre-Announcement
Oppenheimer reiterated an Outperform rating and $60.00 price target on Imperva (NYSE: IMPV) following the company's 2Q pre-announcement. Revenue was guided in the range of $57.5-58M from previous guidance of $65.5-66.5M. LPS was guided $(0.20)-(0.22) from $(0.02)-(0.04). IMPV's weak performance was primarily driven by customers' extended sales cycles across most geographies and verticals.
Analyst Shaul Eyal commented, "IMPV pre-announced disappointing 2Q16 results impacted by extended sales cycles and some customers' shift to point solution rather than platforms procurement. We believe IMPV's weak results are company specific not indicative of solid industry demand trends as the company is in the process of restructuring its sales operations. In that context, Elliott's ~9% stake coupled with Reuters' recent reports that IMPV could be weighing various strategic options could set a floor to the downward ~12% after hours correction. Consolidation in the security space has been gaining momentum over the past few months (Blue Coat, CloudLock, Ping Identity, AVASTAVG) with revenue multiple ranging at 4-8X. Regarding IMPV, we believe 5X EV\FY17 revenue estimate will not be raising too many eyebrows hence our $60 remains intact."
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Shares of Imperva closed at $48.14 yesterday.