Goldman Raising Earnings & Target On Acme Packet (APKT)
Goldman Sachs is raising its earnings and price target on Acme Packet (NASDAQ: APKT), after meeting with company management yesterday at Acme's headquarters. It raised the price target to $33 from $29, but has a Neutral rating on shares.
In a note to clients, Goldman writes, "Our discussion bolstered our confidence in Acme Packet’s secular growth prospects, and we are raising our CY11 sales/non-GAAP EPS ests to $278mn/$0.95 from $271mn/$0.90 on higher product growth."
It goes on to say, "We are raising our 12m PT to $33 from $29 based on a target P/E of 44X (from 41X, on higher growth prospects) applied to our CY11 EPS of $0.75 (from $0.70). Our PT implies 35X our CY11 non-GAAP EPS of $0.95."
Shares of APKT closed at $35.33 yesterday, above Goldman's price target of $33.
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