Gigamon Receives Upgrade After Dropping 36%

D.A. Davidson believes

36 percent drop on Tuesday is a buying opportunity. Analyst Mark Kelleher upgraded shares from Neutral to Buy and has a $22.50 price target after lowering the price target from $36 yesterday. The analyst assumes the company “can maintain a 23% growth rate for the foreseeable future.” Khelleher arrived at his $22.50 price target by applying a 1.3 PEG ratio to the 2015 earnings per share estimate of $0.66. The upgrade comes a day after the firm cut the price target from $34 to $22.50. The 36 percent drop on Tuesday was due to

. Share are up 1.1 percent to $17.51 in Wednesday's trading.