Needham & Company Cuts Price target on Radware Ltd. (RDWR) to $18 Following 14c EPS Miss

Needham & Company maintained a Buy rating on Radware (NASDAQ: RDWR), and cut the price target to $18.00 (from $24.00), following the company's 3Q15 earnings release. Revenues coming in down 15% to $48MM from prior expectations of $58MM and EPS dropping to just $0.10 as compared to the Street at $0.24.

Analyst Alex Henderson commented, "Radware pre-released a rough quarter with Revenues coming in down 15% to $48MM from prior expectations of $58MM and EPS dropping to just $0.10 as compared to estimates of $0.23 at Needham and Street at $0.24. The second miss in a row for a completely different reason is certainly disconcerting. However, the stock has been severely punished and is now priced at very distressed levels. Radware still gets 38% of its Revenues from Security, and Security should produce strong growth. Radware also has an OEM agreement with Cisco that should kick-in in CY16 and could add nicely to EPS. Most importantly, Radware generates solid cash flow and is carrying almost $8.00 per share in cash on the balance sheet with no debt. RDWR is at 1.3x EV/Sales and 7.8x EV/E."

For an analyst ratings summary and ratings history on Radware click here. For more ratings news on Radware click here.

Shares of Radware closed at $14.01 yesterday.

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