UPDATE: Deutsche Bank Raises PT on Proofpoint Following Announcement of Sendmail Acquisition
In a report published Wednesday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on Proofpoint (NASDAQ: PFPT), and raised the price target from $32.00 to $35.00.
In the report, Deutsche Bank noted, “Sendmail acquired for $23m in cash. PFPT announced the acquisition of Sendmail, an email infrastructure provider for $23m in cash. The acquisition was structured as a simultaneous signing and closing and requires no additional approvals. Sendmail's offerings include the open source Sendmail product, and its commercial counterpart Sentiron.The acquisition is revenue neutral for Q413, and is expected to add $5m to revenues in FY14. The EPS would be negatively impacted by $0.06 in Q4, and $0.08 in FY14. Reiterate BUY.”
Proofpoint closed on Tuesday at $32.01.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.