ArcSight’s Durable Growth Drivers Should Propel Shares Higher
November 20, 2009 10:59 AM
Today, Morgan Stanley raised their price target for ArcSight Inc. (NASDAQ: ARST) to $31 from $25, earlier.
According to Morgan Stanley “Our checks point to a strong October quarter for ARST, driven by continued strength in the federal business, an improving commercial business, and stabilizing IT spend, which should restart growth in EMEA and new customer revenues. ARST has shown an average of 9% upside to the mid-point of guidance for the last four quarters, while sustaining 25%+ YoY revenue growth — a proof point of ARST’s durable growth drivers. Positive checks give us increased confidence in our above-consensus estimates for revenues and EPS, while continued beat-and-raise quarters should allow ARST to sustain their premium multiple.”
Today, Shares of ARST are down 3% at $23.77.
