UPDATE: Stifel Nicolaus Raises PT to $23 on Procera Networks

Stifel Nicolaus raises its target price on Buy-rated Procera Networks PKT to $23, up $3, on another impressive quarter with heavy follow-on orders. Stifel Nicolaus says, "The company continued its winning streak with revenue and earnings well above estimates, driven by two large follow-on orders. Gross margin declined sequentially due to a large chassis-oriented order. Customer trial activity continued to be strong with 16 tier-1 trials either ongoing or about to start in the next 90 days. Overall, the company ended Q1 with 18 tier-1 customers and substantial follow-on orders from existing customers. In fact, eight of the company's existing tier-1 operators had follow-on orders during 2011, demonstrating the value and stickiness of Procera's solution." PKT closed at $19.04 a share yesterday.