UPDATE: Imperial Capital Downgrades Mavenir Systems, Inc. to In-Line, Reiterates $18 PT on Mitel Merger Agreement

In a report published Wednesday, Imperial Capital analyst Ashok Kumar downgraded the rating on

from Outperform to In-Line, but reiterated the $18.00 price target. In the report, Imperial Capital noted, "We are lowering our rating to In-Line from Outperform and maintaining our one-year price target of $18. Our price target is about 6% above the recent share price. On 3/2/15, Mitel (MITL) and Mavenir (MVNR) announced a definitive merger agreement whereby MITL is to acquire all of the outstanding common shares of MVNR in a cash and stock transaction valued at about $560mn. The transaction is expected to close in 2Q15. Mitel hopes to take advantage of the mobile networks move towards 4G IP-based solutions by offering mobile service providers a common IP technology layer. We are maintaining our published revenue and EPS estimates on MVNR as well as our $18 price target." Mavenir Systems, Inc. closed on Tuesday at $17.05.