UPDATE: Deutsche Bank Upgrades Ixia to Buy Post Q2 Results

Deutsche Bank raised its rating on Ixia

from Hold to Buy and increased its price target from $10 to $18. Deutsche Bank noted, "Ixia reported Q2 revenues of $92m, above our estimate $88m and consensus of $90m. Pro forma EPS of $0.18 was above our estimate and consensus of $0.16. The company guided Q3 revenues to be $103 to $107m, ahead of our estimate of $90m and consensus of $98m. … Growth does not appear to be slowing with Ixia's core business. Network equipment manufacturing and service provider spending is healthy, as evidenced by Ixia's results. Helping this is the fact that service providers are in the early innings of densifying their networks. Given Ixia's position as the only vendor with an end-to-end solution, testing from the edge to the core, we think they are well-positioned to take advantage of this trend." Ixia closed at $12.97 on Thursday.