Imperial Capital Cuts Price Target on Barracuda Networks (CUDA) Ahead of 1Q Report

Imperial Capital maintained an In-Line rating on Barracuda Networks (NYSE: CUDA), and cut the price target to $15.00 (from $16.00), ahead of the company's 1Q earnings report. Imperial estimates that CUDA will report revenue of $84.2mn and adjusted EPS of $0.11. Street consensus is estimating revenue of $83.9mn and adjusted EPS of $0.11. CUDA is scheduled to announce results on 7/7/16 after the market close.

Analyst Michael Kim commented, "We are maintaining our In-Line rating on CUDA shares and lowering our one-year price target to $15 from $16 based on our reduced outlook. Our price target is consistent with recent levels. We anticipate continued headwinds from shifting demand toward cloud and virtual products from hardware appliances, and potential share erosion in the network security market due to increased competition. In addition, we see greater risks in the EMEA region following the “Brexit” referendum, which constitutes about 18% of revenue. We believe investors could remain on the sidelines until CUDA gains stronger growth momentum across the entire business."

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

Shares of Barracuda Networks closed at $14.97 yesterday.

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