UPDATE: Stifel Nicolaus Cuts PT to $16 on Ixia

Stifel Nicolaus reduces its price target from $17 to $16 on Buy-rated Ixia XXIA as it transfers the company's coverage between analysts. Stifel Nicolaus comments, "We reiterate our Buy rating on XXIA as we believe the company has a defensible product portfolio and competitive advantage that is demonstrated through its sustainable 78%-80% gross margin and above-industry growth rate in end markets where the company generally has only one legitimate competitor. Given the solid product lineup and secular trends in wireless and wireline, we expect the company can consistently grow its revenue at a double-digit rate, or nearly 2x the broader T&M average." XXIA closed at $11.88 on Wednesday.