The analyst notes that the company’s poor earnings stem from an extended sales cycle and a customer shift from platforms procurement to point solution. The analyst explains that the firm’s shortcomings are company-specific and do not indicate any weakness in the industry.
He adjusts his estimates to reflect the slowdown in revenue growth. Eyal estimates revenues to be $279.3M, down from previous estimates of $305.5M. However, EPS estimates have been increased from $0.25 to $0.34.
Despite reduced revenue estimates, Eyal reiterates an Outperform rating for IMPV with a price target of $60.00.
Shaul Eyal is a highly ranked analyst on TipRanks with an average return of 10.4% and a success rate of 61%.