UPDATE: Wedbush Reiterates Neutral Rating, Raises PT on OPNET Technologies

In a report published Wednesday, Wedbush Securities reiterated its Neutral rating on OPNET Technologies OPNT, and slightly raised its price target from $29.00 to $30.00. Wedbush noted, “In a difficult spending environment OPNET delivered solid Q1 results that beat our and consensus expectations. Strength in the quarter was driven by strong federal performance which grew 24% y/y, robust bookings of application performance management (APM) solutions (up 50% y/y), and the closing of deals which slipped last quarter. The international business continues to weaken reflecting the challenges in Europe which is impacting the enterprise market while product revenue grew just 4% y/y. Product bookings, however, grew 19% y/y suggesting a substantial increase in deferred product revenue. Q2 guidance was in line with expectations which we believe reflects risks from Europe and lingering uncertainty regarding federal spending where the company has some large deals in the pipeline, in our view. Looking beyond the current uncertainty, however, we believe the company is showing signs of execution and is positioned to deliver double-digit growth and enterprise share gains over the long term.” OPNET Technologies closed on Tuesday at $27.99.