Needham & Company Raises Price Target on ARRIS Group (ARRS) Following 2Q Beat

Needham & Company reiterated a Buy rating on ARRIS Group (NASDAQ: ARRS), and raised the price target to $32.00 (from $30.00), following the company's 2Q earnings report. Revenue of $1.73B exceeded consensus of $1.70B while NG EPS of $0.84, handily beat consensus of $0.66. 3Q16 guidance included revenue of $1.700-1.750B and $0.72-0.77 NG EPS, in line with and above consensus of $1.726B and $0.72, respectively.

Analyst Richard Valera commented, "ARRS reported better than expected 2Q16 results, offered solid 3Q16 guidance and increased its prior 2016 guidance citing a relatively broadbased improvement in demand and visibility vs. a quarter ago and ahead-of-plan cost synergies related to its Pace acquisition. We view the results and improved outlook as encouraging and likely meaningfully better than feared. Even with the after-hours bump in the shares, we continue to see them as inexpensive at ~9x C'16 NG EPS. We reiterate our Buy rating while increasing our PT to $32 (was $30), or an unchanged ~11x our C2017 NG EPS estimate."

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

Shares of ARRIS Group closed at $24.35 yesterday.

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