Imperial Capital Cuts Price Target on Radware Ltd. (RDWR) to $25 Following 2Q Earnings Results

Imperial Capital maintained an Outperform rating on Radware (NASDAQ: RDWR), and cut the price target to $25.00 (from $28.50), following 2Q15. RDWR reported 2Q15 revenue of $56.0mn and adjusted EPS of $0.23, below Street estimates of $59.2mn and $0.24, respectively. RDWR estimates revenue of $57-59mn and adjusted EPS of $0.23-0.24, below Street estimates of $62.8mn and $0.26.

Analyst Michael Kim commented, "We are maintaining our Outperform rating on RDWR shares and lowering our one-year price target to $25.00 from $28.50 based on our reduced estimates and comparative valuation. Our
price target is about 36% above the recent share price. Strong growth in the Americas and EMEA regions was partially offset by weakness in APAC. Given this divergence in regional performance, we primarily attribute this shortfall to disappointing sales execution. During the conference call on 7/28/15, management indicated plans to expand its field activities and implement changes to align the sales strategy in APAC with the company’s other regions. We expect tangible progress from these changes in the next 2-3 quarters, with more consistent performance within APAC."

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 $18.38 yesterday.

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