UPDATE: D.A. Davidson Reiterates Neutral Rating, Raises PT on RadiSys Corporation on Improving Outlook

In a report published Monday, D.A. Davidson reiterated its Neutral rating on RadiSys Corporation

, and raised its price target from $2.75 to $4.00. D.A. Davidson noted, “Improving outlook. While RadiSys is once again in a transitional phase and questions about the future remain, we see the recently updated guidance and better than expected results in the software and solutions business as indicators that near-term results could begin to improve. Margins are likely to expand as the revenue mix shifts toward the software business. Additionally, the company noted that they have adequate liquidity to retire the $16.9 million of convertible debt due in February, alleviating some of our concerns. Given the updated guidance and positive commentary, we are raising our price target to $4.00 from $2.75, based on 0.5x our 2013 EVto-Sales estimate.” RadiSys Corporation closed on Friday at $3.95.