UPDATE: Pacific Crest Securities Initiates Coverage on Gigamon with Outperform Rating, $38 PT as Solid Execution Could Preserve Hypergrowth and Justify Upside

In a report published Monday, Pacific Crest Securities analyst Josh Beck initiated coverage on

with an Outperform rating and $38.00 price target. In the report, Pacific Crest Securities noted, “We are initiating coverage of Gigamon with an Outperform rating. In 2005, Gigamon pioneered the market for network visibility controllers (NVCs), which essentially virtualize production network data and enable complex data center applications to be operated in a cost-effective and reliable manner by boosting the efficiency of the performance-monitoring gear. Gigamon's product is rooted in a proprietary flow-mapping algorithm that enables rich programmability and scalability. New hardware and software modules have extended the platform's reach and application intelligence. While third-party data on the market size is limited, our total addressable market (TAM) analysis suggests a multibillion-dollar market opportunity just within the high-end segment, which we define as large enterprise data centers and tier-1 service providers.” Gigamon closed on Friday at $30.83.