Needham & Company Raises Price Target on Sapiens (SPNS) Following 2Q Results

Needham & Company reiterated a Buy rating on Sapiens International Corp. NV (NASDAQ: SPNS), and raised the price target to $14.00 (from $11.00), following 2Q results. SPNS reported 2Q revenue of $43.4MM, up 12.4% Y/Y, above consensus at $43.2MM. SPNS posted EPS of $0.11, $0.02 above consensus.

Analyst Mayank Tandon commented, "Sapiens delivered upside 2Q results despite facing currency headwinds, showing solid revenue growth and a strong margin performance. Management raised the revenue guidance range for FY15 with the revised guidance representing 20% Y/Y growth on a constant currency basis and also raised the operating margin guidance to reflect operating efficiencies. Management announced the acquisition of Insseco, a software provider for the insurance market based in Poland. The acquisition opens up a new market for SPNS and is anticipated to be accretive starting in 3Q. At 2.5x our EV/FY16 revenue estimate, we believe the shares remain undervalued for a 15-20% organic revenue grower with potential to deliver sustained margin expansion. We maintain our BUY rating and increase our price target to $14."

For an analyst ratings summary and ratings history on Sapiens International Corp. NV click here. For more ratings news on Sapiens International Corp. NV click here.

Shares of Sapiens International Corp. NV closed at $11.87 yesterday.

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