Needham & Company reiterated a Buy rating on ARRIS Group (NASDAQ: ARRS), and raised the price target to $32.00 (from $30.00), following the company's 2Q earnings report. Revenue of $1.73B exceeded consensus of $1.70B while NG EPS of $0.84, handily beat consensus of $0.66. 3Q16 guidance included revenue of $1.700-1.750B and $0.72-0.77 NG EPS, in line with and above consensus of $1.726B and $0.72, respectively.

Analyst Richard Valera commented, "ARRS reported better than expected 2Q16 results, offered solid 3Q16 guidance and increased its prior 2016 guidance citing a relatively broadbased improvement in demand and visibility vs. a quarter ago and ahead-of-plan cost synergies related to its Pace acquisition. We view the results and improved outlook as encouraging and likely meaningfully better than feared. Even with the after-hours bump in the shares, we continue to see them as inexpensive at ~9x C'16 NG EPS. We reiterate our Buy rating while increasing our PT to $32 (was $30), or an unchanged ~11x our C2017 NG EPS estimate."

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Shares of ARRIS Group closed at $24.35 yesterday.