4.50 DesjardinsHoping for some news around the Q2 announcement. Possibly a hint that Q3/Q4 might share an added 5M+ missed on Q2 which is quite likely.
A new customer win 5-10M+++ would be nice right about now.
Hoping to see us back in 4's soon.
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Although the company lowered revenue expectations for the second quarter, Desjardins Securities analyst Maher Yaghi feels the impact on Sandvine Corp. (SVC-T) will not be a “significant detractor” to long-term growth.
In altering its revenue guidance to between $28-million and $28.5-million (U.S.), compared with a consensus view of $33.9-million, Sandvine blamed the timing of contracts that did not close during the quarter and more customer acceptance tests in its contracts, leading some revenue to be recognized later.
“We have made small adjustments to our revenue forecasts as the sale cycle has increased; however, we continue to forecast revenue growth of [approximately] 14 per cent for the 2016 fiscal year,” said Mr. Yaghi. “We have also increased our valuation multiples due to comps’ trading activity and recent transactions we have seen in the space.”
Mr. Yaghi maintained a “buy” rating but lowered his target price by 10 cents to $4.50 (Canadian). The analyst consensus is $3.97.
“The company’s past investments into market-leading products and the prospect for future growth as customers invest in virtualizing their networks position Sandvine to benefit attractively,” he said. “In terms of valuation, when cash is stripped out, the company is trading at an [about] 11 times price-earnings —an attractive valuation given the company’s growth attributes. Sandvine is also building up a healthy cash position that could be used for strategic [mergers and acquisitions[ or put toward its normal course issuer bid. Hence, we believe the pullback in the stock offers a good entry point.”