Needham & Company Upgrades RadiSys (RSYS) to Buy

Needham & Company upgraded RadiSys (NASDAQ: RSYS) from to Buy with a price target of $4.00 on improved execution and SS growth prospects.

Analyst Richard Valera commented, "RSYS delivered 2015 results that exceeded its initial guidance, reversing a long history of annual disappointments. The company also showed strong growth in high-margin Software Solutions (SS) business, while managing its declining Embedded Systems business for solid cash flow. We think RSYS is positioned to continue to deliver solid growth in its SS business and NG EPS, with its nascent FlowEngine product standing out as the most significant growth driver and potential upside catalyst. Based on this improved execution and healthy outlook for its SS business, we are upgrading RSYS to Buy from Hold and establishing a PT of $4.00, or ~15x our ex-cash C2016 NG EPS or EV/C2016 Sales of 0.8x."

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

Shares of RadiSys closed at $2.69 yesterday.

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