UPDATE: B. Riley & Co. Reiterates On Xcerra Corp Following Strong F4Q14 Report

In a report published Tuesday, B. Riley & Co. analyst Brett Piira reiterated a Buy rating on Xcerra Corp XCRA, and raised the price target from $13.00 to $13.25. In the report, B. Riley & Co. noted, “Yesterday, before the market open, XCRA reported an impressive F4Q14 with revenues and EPS beating BR estimates by $9.3MM/8.0% and $0.11/80.8%, respectively. The F1Q15 outlook was also strong as the revenue and EPS guidance midpoint of $126.0MM and $0.25 was better than BR/Street estimates of $123.0MM and $0.24. However, the announcement of a $40MM equity raise overshadowed the solid results, sending shares down 7.1% on the day. Incremental takeaways were mostly positive as the company a) completed the planned $15MM in opex synergies two quarters ahead of plan, b) continued product traction with the shipment of the 100th Diamondx system and grew an already dominant RF test share with the PAx, and c) had more cross selling success through Spirox and a unique total test cell agreement. On a higher F1Q15 revenue base our FY15 estimates increase from $483.8MM/$0.94 to $494.4MM/$0.97. On our new estimates and an unchanged 1.2x F15 EV/S our price target increases from $13.00 to $13.25 and we maintain a Buy rating.” Xcerra Corp closed on Monday at $9.92.