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D.A. Davidson Reiterates Buy, Lowers Price Target On RadiSys On Attractive Risk-Reward Profile

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In a report published Wednesday, D.A. Davidson analyst Thomas Diffely reiterated a Buy rating on RadiSys Corporation (NASDAQ: RSYS), but lowered the price target from $4.50 to $3.50.

In the report, D.A. Davidson noted, "Revenue of $48.2 million and pro-forma EPS of $0.01 missed the Street mean of $50.4 million and $0.06, respectively. Pro-forma GM of 33.3% was below our 37.3% estimate and below the low end of the guided range (36%- 39%), attributable to unfavorable product mix (higher mix of low margin ATCA products). RSYS is guiding revenue of $44-$50 million, largely meeting the Street mean of $47.7 million. The midpoint of the proforma EPS outlook of $(0.04)-$0.06 is in line with the Street mean of $0.01. Pro-forma GM is expected at 31%-33% and non-GAAP operating expenses are projected to decline to roughly $14.5 million (from $15.6 million in 4Q). Cash flow is expected to be a positive $3 million (inclusive of ~$2 million of restructuring charges)."

RadiSys closed on Tuesday at $2.50.

Latest Ratings for RSYS

DateFirmActionFromTo
Jul 2018DowngradesBuyNeutral
Jul 2018DowngradesOutperformMarket Perform
Jun 2016MaintainsBuy

View More Analyst Ratings for RSYS
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Posted-In: D.A. Davidson Thomas DiffelyAnalyst Color Price Target Analyst Ratings

 

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