Needham & Company Starts Barracuda Networks (CUDA) at Buy

Needham & Company initiates coverage on Barracuda Networks (NYSE: CUDA) with a Buy rating and a price target of $28.00.

Analyst Alex Henderson commented, "We think investors undervalue the growth potential and defensibility of the Barracuda business model. CUDA is riding the coat-tails of the largest migration of applications in the history of IT as Microsoft moves to the cloud delivery of Office 365. The underlying growth rate of the Core Products is running in the 20-30% range, but the legacy prem business is masking this growth. We think the accelerating investments that cause the flat EPS are already discounted, and the numbers look highly conservative and beatable. We initiate with a Buy rating and $28 price target."

For an analyst ratings summary and ratings history on Barracuda Networks click here. For more ratings news on Barracuda Networks click here.

Shares of Barracuda Networks closed at $23.86 yesterday.

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