UPDATE: Stifel Nicolaus Raises PT to $24 on Ixia On Above-Seasonal Guidance
Stifel Nicolaus reiterated its Buy rating on Ixia (NASDAQ: XXIA) and raised its price target from $22.00 to $24.00.
Stifel Nicolaus commented, "1Q13 guidance bucks traditional seasonality with management targeting continued growth from acquisitions (up 6% q/q at the mid-point) and flattish sequential core revenue. BreakingPoint and Anue should also contribute to the GM% profile sequentially, netting to a pro forma EPS guidance range of $0.23-$0.25, above the consensus of $0.20 (even when normalizing for a $0.02/$0.03 federal R&D tax credit benefit). … Overall, we positively view results and guidance with management's tone clearly positive, noting several opportunities to expand newly acquired businesses internationally while also integrating functionality across Ixia's core product portfolio."
Ixia closed at $19.80 on Wednesday.
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