Nomura Securities Cuts Price Target on Imperva (IMPV) Following Preliminary 2Q Results
Nomura Securities maintained a Buy rating on Imperva (NYSE: IMPV), and cut the price target to $55.00 (from $60.00), following the company's preliminary 2Q financial results. IMPV is expecting revenue to be in the range of $57.5-58.0mn, an 8% growth yoy. This is down from the previous revenue guidance of $65.5-66.5mn, or growth of 23% at the midpoint. This negative preannouncement follows 1Q’16, the first quarter since 1Q’14 where Imperva did not beat its revenue guidance. Imperva will announce full 2Q’16 earnings results on August 4, 2016, after the market close.
Analyst Frederick Grieb commented, "On July 11, after the close, Imperva announced preliminary financial results for 2Q’16 that were lower than expectations. Imperva expects 2Q’16 revenue to be in the range of $57.5-58.0mn, representing 8% growth yoy. This is down significantly from the previous revenue guidance of $65.5-66.5mn, or growth of 23% at the midpoint. The stock was down about 10% afterhours after being up 8% on the back of news that the company was in talks with investment banks to explore strategic options. We maintain our Buy rating, though we are reducing our target price to $55 (down from $60, previously) based on updates to our earnings model."
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Shares of Imperva closed at $48.14 yesterday.