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Imperva Shares Plunge Below $40 Amid Sale Concerns

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Imperva Shares Plunge Below $40 Amid Sale Concerns
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Shares of Imperva Inc (NYSE: IMPV) tanked more than 15 percent in the pre-market trading on Wednesday after concerns were raised on the possible sale.

According to a Bloomberg report, the sale process has been put on a hold, as the company is seeking increased deal price. The cybersecurity firm has improved its sales outlook after lowering its outlook in July.

While Imperva has boosted deal value expectations, potential suitors are asking whether the company could be in a position to deliver sustained growth to fulfill the increased deal value expectations.

Meanwhile, JPMorgan commented that the company should deliver consistent revenue growth at least for a couple of quarters before seeking a higher price. Therefore, analyst Sterling Auty expects the stock to come under heavy pressure.

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On October 3, BTIG predicted that premium could be minimal for any possible takeover of Imperva citing that shares have jumped approximately 23 percent after a report of potential sale.

On July 11, Bloomberg reported that Imperva was exploring the possibility of selling itself following the pressures exerted by activist investor, Elliott, in the preceding month. Reports indicated that Cisco Systems, Inc. (NASDAQ: CSCO) and International Business Machines Corp. (NYSE: IBM) were among those interested in acquiring the company.

At last check, IMPV dropped below the $40 level at $39.20 losing 15.97 percent.

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Latest Ratings for IMPV

DateFirmActionFromTo
Nov 2016NeedhamUpgradesHoldBuy
Nov 2016Evercore ISI GroupUpgradesHoldBuy
Nov 2016MacquarieUpgradesNeutralOutperform

View More Analyst Ratings for IMPV
View the Latest Analyst Ratings

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