Roth Capital Hikes Attunity Price Target To $21 On 'Expanded Tool Suite Strength'

Sharesof Attunity Ltd ATTU are up almost 5 percent on Thursday trading, after the company reported better-than-expected results before the market opened. Following the announcement, Roth Capital analyst Richard Baldry reiterated a Buy rating the stock, while boosting his price target from $18.00 to $21.000, noting that momentum is spreading across the suite.

Expanding The Tool Suite Strength

The software provider’s adjusted revenues surged 49 percent year-over-year, to a record $12.5 million, while pro forma earnings of $0.06 per share doubled Roth Capital’s $0.03 per share estimate. The company’s newest "Visibility" tool –recently acquired via Appfluent- totaled $0.9M in license, broadening “sales momentum across its suite.”

Given that the firm expects this momentum to continue as its expanding sales force deepens in tenure, the analysts now see the stock surging to $21.00.

Below are a few other points the report highlights:

• Earnings rebounded quickly after the aforementioned acquisition and a seasonal pullback.
• The analysts believe Attunity’s “expanded suite's strategic value should prove strong in many Big Data projects to support rapid growth for several years.”
• The balance sheet seems moderately leveraged.
• Valuation looks appealing, especially given the company’s “accelerated growth and strategic value.”

Roth Capital is now modeling earnings of $0.26 per share for 2015, up from its previous estimate of $0.25 per share. Revenue is expected to come in at $52.6 million – up from a previous estimate of $52.2 million.