UPDATE: Deutsche Bank Cuts PT to $18 on Acme Packet Following Lower Company Guidance
Deutsche Bank reiterated its Hold rating on Acme Packet (NASDAQ: APKT) on Friday after the company announced lower guidance, and reduced its price target on shares from $23 to $18.
In the report, Deutsche Bank stated, "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."
Shares of Acme Packet were trading at $15.59 at the time of posting, down 15.27 percent from Thursday's market close.
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Tags: Deutsche Bank