Barclays Initiates Radware at Overweight

On Monday, Barclays initiated coverage on Radware RDWR, a developer and manufacturer of networking solutions, at Overweight. Barclays said in a report that it believes Radware is in a strong position to grow as fast as the market, if not faster. In addition, Barclays said that this growth might be supported by Radware's original equipment manufacturing (OEM) opportunity with Juniper Networks JNPR. Juniper announced in May that it was negotiating a deal to license application delivery controller technology from Radware. Barclays said it believes that the deal could reach 10% of Radware's sales in the fourth quarter of 2012. "In 1Q12 Juniper began actively marketing a RDWR based soft ADC as part of its MX3D router," said Barclays analyst Joseph Wolf. "We see this new channel as a means to grow revenues and boost gross margins." The Juniper deal is not Radware's only OEM partnership. On Wednesday, June 20, the company announced that it is working with Check Point Software Technologies CHKP to incorporate Radware's Attack Migration System in Check Point's new line of DDos Protector appliances. "It's no secret that Denial of Service attacks represent a serious challenge to businesses worldwide, and this offering will provide organizations with the capabilities they need to mitigate these threats," said Amnon Bar-Lev, president at Check Point, in a June 20 statement. "Through our partnership with Radware, we are bringing our customers road-tested technology matched with our market-leading security expertise,” Bar-Lev added. After the Check Point deal, Israel-based Radware surged to a one-month high. The stock jumped around 3.7% to $39.63 for Wednesday's trading session. Shai Schiller, vice president of corporate development and strategic business at Radware, said in a Wednesday statement, "Teaming with Check Point on the DDoS Protector line of security appliances brings together two industry leaders in a best-of-breed solution to help business effectively detect and block in seconds the type of DoS attacks that overuse network and application resources.” Schiller continued, “We are very excited to be selected by Check Point for this strategic relationship, which is further proof of the leadership and value that Radware brings to the application and network security space." On Monday, Radware was trading at about $38.16, down roughly 0.4%. Follow me @BCallwood.