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|Eröffnet am:||30.11.16 19:50||von: TradingAske.||Anzahl Beiträge:||24|
|Neuester Beitrag:||24.04.21 23:26||von: Franziskazhu.||Leser gesamt:||8.792|
"We still think the stock has room to appreciate past $60 but we can reiterate our Buy and maintain our $58 Target Price. GIMO remains our Single Best Idea in Networking as it has for 2015 and 2016, and seems likely positioned to retain that role in 2017. We talked to over 35 clients including two that had done one-on-ones with the company at a recent conference. No one heard any negative comments from management or had a good explanation for the correction other than the fact it was up so much and “risk off”. We talked to management and went over all the various business angles. Gigamon is as bullish as ever. We think the company has a good shot at 30%-40% growth in CY17 and again in CY18. In fact with a lot of things coming together the visibility into the out year is growing, in our opinion. We think Gigamon can push up GMs further and push up Operating Margins toward the 30% plus vicinity from the low 20’s currently."
However, the company’s year-over-year revenue and earnings comparisons for 2016 were encouraging.
We believe that Gigamon is well positioned to benefit from a rapidly growing network security solutions market, which is worth more than $18 billion. The ongoing transition to cloud and the fast adoption of the Internet of Things (IoT) technology presents significant growth potential for the company.
We believe that product launches will continue to drive growth. The GigaSMART, GigaVUE-HC1 and GigaVUE-HC2 platforms continue to witness increased adoption. Moreover, the company is adding clients, which should bolster its financial results.
Hooper's synopsis leaves room for a comeback in 2017 if he's right that customers were simply delaying orders. Until a couple of months ago, Gigamon had been a strong performer since its 2013 IPO as shares had more than doubled, and even with today's setback, revenue is still set to grow by 25%. For a stock that now has a modest P/E of just 25, that seems like an encouraging sign.
I'd expect Gigamon to bounce back from today's sell-off, but if this trend continues into the next quarter, there could be trouble.
Hedge fund activist Paul Singer just found his next target
The firm said in the SEC filing that shares of Gigamon are "significantly undervalued and represent an attractive investment opportunity."
Further, Elliott seeks to engage in a dialogue with Gigamon's board to discuss opportunities that would maximize shareholder value, the filing said. This could entail Elliott making proposals with respect to potential changes in Gigamon's operations or management, the SEC filing said.