UPDATE: Wunderlich Securities Downgrades Ixia as Valuation Amplifies Concern Over Management Uncertainty

In a report published Friday, Wunderlich Securities analyst Matthew S. Robison downgraded the rating on Ixia XXIA from Buy to Hold, but reiterated the $18.00 price target. In the report, Wunderlich Securities noted, “CEO Victor Alston has left IXIA (XXIA) over an ostensibly trivial scandal involving apparently false statements in an employment application nearly 10 years ago. We are downgrading to Hold because the shares are too close to our target to purchase more without a better understanding of why the board did not support Mr. Alston upon gaining knowledge of the ancient transgression. If it turns out circumstances are fundamentally benign, we would be inclined to become constructive again, especially at prices that represent more valuation headroom relative to our unchanged price target of $18. We believe Ixia (XXIA) has sufficient management depth to maintain the status quo.” Ixia closed on Thursday at $15.72.