Sterne Agee Raises PT on NetScout Systems to $21

Sterne Agee has published a research report on NetScout Systems

commenting that positive Telco outlook could drive near-term strength in the stock. In the report, Sterne Agee writes, "NetScout reported 3Q12 revenue and non-GAAP EPS of $83.3 million and $0.35 versus our estimates of $83.0 million and $0.32 and consensus at $82.0 million and $0.33. Bookings were up 4% Y/Y, led by Telco/SVP that grew 44%. New business bookings grew 6% Y/Y to $57.4 million in 3Q12. Geographically, NetScout grew domestic sales 16% Y/Y, representing 73% of revenue while EMEA sales saw a Y/Y decline of 29% and APAC grew 9% Y/Y. Management cited weakness in Europe pertaining to macro economic conditions specifically related to Financials. NetScout drove 166 deals over $100K, 25 deals over $500K, and 10 deals over $1M; of those 10 deals, 5 came from Telco, 1 from Financial, and 2 from Government verticals." Sterne Agee maintains its Buy rating and has raised the price target from $19 to $21 on NetScout Systems, which is currently trading up $2.77 from yesterday's $17.05 closing price.