Imperial Previews Barracuda Networks' Q2 Results, Downgrades To Underperform

In anticipation of Barracuda Network, Inc. CUDA’s Q2 2017 Earnings, Imperial Capital analyst Michael Kim downgraded the firm’s Rating from In-Line to Underperform and raised its price target from $17 to $20.

Kim cited valuation concerns as the main reason for the downgrade, and expressed that Imperial anticipates growth in core business (cloud-based), offset by weaker on-site, legacy business.

“Based on sum-of-the-parts valuation, we believe CUDA shares are over-valued until the company demonstrates stronger progress toward its long-term target model,” said Kim.

At time of writing, Barracuda shares were trading at $24.60, down 1.4 percent.