Barracuda Stock Worth $46, JMP Says

In a report published Tuesday, JMP Securities analysts maintained a Market Perform rating on

, while raising the price target from $43 to $46, after the company reported F4Q15 results. Barracuda Networks reported its quarterly EPS at $0.07, ahead of JMP and consensus estimates. Revenue came in at about $72M, in-line with expectations. The company guided to F1Q16 EPS of $0.08- $0.09 on revenues of $76M-$78M. The company's billings grew 17 percent y/y to $96M. Adjusting for currency fluctuations, billings grew more than 20 percent y/y, handsomely beating consensus of 16 percent. "Billings growth was driven by strong momentum in Storage and Network Security sales, and accelerating subscription sales," the analysts said. Barracuda Networks said that the number of multi-product customers had increased to nearly 35,000 by the end of FY15, representing 27 percent y/y growth. In the report JMP Securities noted, "Management indicated on our call back that its medium to large deal business (deals over $10,000) performed well in F4Q15, consistent with our channel checks. Specifically, our checks suggest Barracuda is garnering significantly larger deal sizes by selling storage solutions to existing customers." The company's share price slid about 4 percent after the announcement of results. The analysts believe high investor expectations heading into the earnings announcement was the reason for the share price pressure. The price target has been raised to reflect "an appreciation in valuation multiples across the cybersecurity sector," the report explained.