Imperial Capital Has Positive Outlook on Zix Corporation

In a report published Thursday, Imperial Capital analyst Michael Kim reiterated an Outperform rating and $5.00 price target on

. In the report, Imperial Capital noted, "We are maintaining our Outperform rating and our one-year price target of $5 based on comparative valuation. Our price target is about 34% above the recent share price. We see positive trends in the core email encryption services business, with stronger new first year orders (NFYOs) and higher backlog exiting 4Q14. We highlight expanding deployments beyond the company's primary vertical markets, as these customers constituted about 25% of NFYOs in 4Q14. We also expect greater contribution from Google Apps Message Encryption (GAME), a long-awaited opportunity, through Google's reseller channel over the coming quarters." Zix Corporation closed on Wednesday at $3.73.