Piper Jaffray Raises PT on Blue Coat Systems to $25.81

Piper Jaffray has published a research report on Blue Coat Systems

and has raised the price target from $19 to $25.81. In the report, Piper Jaffray writes, "This morning Blue Coat Systems entered into a definitive agreement to be acquired by private equity firm Thoma Bravo for $25.81 per share, representing a 48% premium to yesterday's closing price. The company had been the subject of takeout speculation recently with notable activist firm Elliot Associates taking a significant position in the company. We believe that the company's attractive cash flow generation and need for a behind closed door restructuring made it an attractive target for private equity, and that the transaction is not necessarily a leading indicator of further consolidation in the security or WAN Optimization space. As a result, we are reiterating our Neutral rating but raising our price target to $25.81 to reflect Thoma Bravo's recent offer." Piper Jaffray maintains its Neutral rating on Blue Coat Systems, which is currently trading up $7.71 from yesterday's $17.48 closing price.