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Imperva Shares Plunge Below $40 Amid Sale Concerns

Imperva Shares Plunge Below $40 Amid Sale Concerns
Related IMPV
Buckingham Thinks The Probability Of A Deal For Imperva Has Clearly Decreased
Benzinga's M&A Chatter for Wednesday, October 19, 2016

Shares of Imperva Inc (NYSE: IMPV) tanked more than 15 percent in the pre-market trading on Wednesday after concerns were raised on the possible sale.

According to a Bloomberg report, the sale process has been put on a hold, as the company is seeking increased deal price. The cybersecurity firm has improved its sales outlook after lowering its outlook in July.

While Imperva has boosted deal value expectations, potential suitors are asking whether the company could be in a position to deliver sustained growth to fulfill the increased deal value expectations.

Meanwhile, JPMorgan commented that the company should deliver consistent revenue growth at least for a couple of quarters before seeking a higher price. Therefore, analyst Sterling Auty expects the stock to come under heavy pressure.

Related Link: How AWS, Azure, Google Cloud Adoption Will Impact The Security Market

On October 3, BTIG predicted that premium could be minimal for any possible takeover of Imperva citing that shares have jumped approximately 23 percent after a report of potential sale.

On July 11, Bloomberg reported that Imperva was exploring the possibility of selling itself following the pressures exerted by activist investor, Elliott, in the preceding month. Reports indicated that Cisco Systems, Inc. (NASDAQ: CSCO) and International Business Machines Corp. (NYSE: IBM) were among those interested in acquiring the company.

At last check, IMPV dropped below the $40 level at $39.20 losing 15.97 percent.

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Latest Ratings for IMPV

Oct 2016BTIG ResearchDowngradesBuyNeutral
Sep 2016Buckingham ResearchDowngradesBuyNeutral
Sep 2016NomuraDowngradesBuyNeutral

View More Analyst Ratings for IMPV
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