Needham & Company Raises Price Target on Perficient, Inc. (PRFT) Following a Solid 1Q

Needham & Company reiterated a Buy rating on Perficient (NASDAQ: PRFT), and raised the price target to $25.00 (from $24.00), following the company's 1Q earnings report. PRFT reported 1Q revenue of $123.8 million, above the consensus estimate of $122.9 million. The company's $0.29 in EPS was a penny above the Street. Management introduced guidance for 2Q, forecasting a range of $119-129 million in revenue, with the midpoint of $124 million a shade below consensus of $125.4 million.

Analyst Mayank Tandon commented, "PRFT kicked off FY16 on a solid note, outperforming Street estimates slightly. While the key services segment came in a shade below our estimate, it rose a healthy 6.5% Y/Y organically. Management also introduced 2Q guidance that is near consensus, with services revenue anticipated to grow 10% Y/Y organically. Management reiterated their FY16 revenue and EPS outlook that reflects 7-8% Y/Y organic growth, and strong gross and EBITDA margin expansion. We believe the solid start to 1Q and the recent bookings strength sets PRFT up to show healthy organic growth trends through FY16 and into FY17. We believe the risk-reward remains favorable at 12-13x our FY17 EPS estimate and we reiterate our BUY rating and increase our target to $25."

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

Shares of Perficient closed at $20.31 yesterday.

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