UPDATE: Brean Capital Reiterates on SeaChange International Following Preannounced F14 Miss
In a report published Wednesday, Brean Capital analyst Todd Mitchell reiterated a Buy rating on SeaChange International (NASDAQ: SEAC), but lowered the price target from $18.00 to $14.00.
In the report, Brean Capital noted, “Last night, SeaChange pre-announced lower than expected F4Q14 results and gave an initial outlook for F15 that implies little-to-no top-line growth. Management attributed under-performance to delays in both receiving customer orders and obtaining final acceptances for next gen products, and faster than expected attrition of prior gen products. Despite the challenges, independent due diligence confirms a robust pipeline of business, particularly in Europe, and management indicated that it does anticipate picking up all customer acceptances missed in F14 in F15.
"We also continue to see SeaChange's strategic value to a bigger player, given its leading market share in back office and emerging position in RDK-based home gateway software. Therefore, we are maintaining our Buy rating on SEAC. However, it is clear that investors are going to need to wait another year for this to manifest itself into stronger fundamentals. As a result, we are lowering our estimates for F14 and F15, and cutting our price target to $14 from $18.”
SeaChange International closed on Tuesday at $12.09.
Latest Ratings for SEAC
|Feb 2014||Brean Capital||Maintains||Buy|
|Dec 2013||Brean Capital||Maintains||Buy|
|Oct 2013||BWS Financial||Initiates Coverage on||Strong Buy|
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