UPDATE: Wedbush Initiates OPNET Technologies with Neutral, $29 PT on Macro Outlook

Wedbush initiates its coverage on OPNET Technologies

with a Neutral rating and a price target of $25.53. Wedbush comments, "We believe the weakening IT spending environment in the U.S.; deteriorating demand in Europe, and significant uncertainty regarding federal IT budgets poses near-term risks to estimates. Looking beyond the current uncertainty, however, we believe the company is well-positioned to deliver double-digit growth, margin expansion and share gains over the long term owing to Opnet's comprehensive solution. We apply a 20x multiple on our CY13 cash-adjusted EPS estimate of $1.21 plus $4.90 in cash per share to arrive at our target." OPNT closed at $25.53 on Thursday.