UPDATE: FBR Capital Markets & Co. Reiterates Market Perform Rating, Lowers PT on KEYW Holding Corp. on Soft 4Q Results

In a report published Thursday, FBR Capital Markets & Co. analyst Daniel H. Ives reiterated a Market Perform rating on KEYW Holding Corp. KEYW, but lowered the price target from $12.00 to $9.00. In the report, FBR Capital Markets & Co. noted, "Last night, The KEYW Holding Corporation (KEYW) delivered soft December (4Q) results that came in below Street expectations on both the top and bottom lines. While the company does not typically provide guidance, management unveiled its 2015 outlook, which was also below expectations as it appears the ramp in the all important Hexis business is occurring at a slower rate than anticipated, a dynamic we believe will put pressure on shares this morning. That said, there is a massive cybersecurity market opportunity for the company to capitalize on over the coming years, in our view, although we believe adding key reference customers remains crucial to gaining consistent growth/momentum in KEYW's quest to proliferate its next-generation HawkEye G product/brand awareness. In terms of the December quarter, the government solutions business expanded its core services (e.g., cloud computing, cyber training, etc.) less than expected, and profit in the segment was negatively affected by the ongoing usage of subcontractors. For the commercial business, despite a growing pipeline, number of pilot agreements, and installations in the field in 4Q, revenue came up shy of the Street's estimates." KEYW Holding Corp. closed on Wednesday at $9.90.