Dougherty & Co Downgrades Aerohive Networks (HIVE) to Neutral

Dougherty & Co downgraded Aerohive Networks (NYSE: HIVE) from Buy to Neutral and removed its price target (prior $10.00). The change follows Q3 results.

Analyst Catharine Trebnick said, "Aerohive Networks reported Q3’14 results in line with the negative preannouncement. Management attributed the revenue miss to multiple factors including: (1) Sales execution impacted revenues from their less-developed territories including Western U.S and APAC. Our checks heading into the quarter were from the more developed territories so we missed this. (2) Order linearity was on track until the last few weeks of September where orders fell below expectations for the quarter. Management outlined a “get well plan” which includes building off solid foundation, hiring in key regions, boosting sales productivity and landing anchor accounts."

"We believe strong channel program combined with consistent execution will be required for the stock to work given the tough competitive landscape. We are moving to a Neutral rating from Buy. We have plans to revisit our thesis as we see steady revenue improvement from sales /channel productivity in the less developed territories," added the analayt.

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

Shares of Aerohive Networks closed at $4.57 yesterday.

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