BCSI Advances After Rating Upgrade Due To Management Changes
Shares of Blue Coat Systems Inc (NASDAQ: BCSI) surged after Needham upgraded the company from “hold” to “buy.”
BCSI’s shares jumped 13.22% to $21.32 at 12:01 pm. Analyst Scott Zeller at Needham upgraded the company after Blue Coat yesterday named Mike Borman as its new CEO. Mike Borman will replace Brian NeSmith, who will be the chief product officer of the company.
Scott Zeller said, “The appointment of Borman as CEO is an acknowledgement by BCSI that operations had faltered at the company.” He added, “In our view, the combination of a new CEO who is a proven operator, plus ‘washed out’ valuation after two weak quarters of guidance, provides a window for an upgrade to shares.”
Blue Coat Systems’ shares have lost 15.18% over the past month and have moved down 34.02% so far this year.
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