UPDATE: Deutsche Bank Cuts PT to $18 on Acme Packet Following Negative Pre-Announcement

Deutsche Bank reiterated its Hold rating on Acme Packet

on Friday after the company pre-announced negatively, and reduced its price target on shares from $23 to $18. Deutsche Bank commented, "Acme negatively pre-announced before market open today (revised Q2 outlook: $66m -$68m / $0.12- $0.14) noting continued near-term weakness in the North American carrier market. The pre-announcement is consistent with our caution on a moderate growth year for Acme. Our research suggests continuing strength in Acme's enterprise SBCs (roughly 25% of revenues), albeit with growing competition from Cisco, etc. We see a gradually-paced carrier spending recovery for SBCs; gated to Q4+ versus Q3+. Growth drivers such as VoLTE point to a CY14+ event. We maintain our Hold rating and lower our Price Target from $23 to $18, on lowered FY12/13 estimates." Acme Packet closed at $18.40 on Thursday.