Oppenheimer Thinks Imperva’s Stock is Going to Recover

By Austin Angelo

Oppenheimer analyst Shaul Eyal reiterated a Buy rating on Imperva (NYSE: IMPV) today and set a price target of $55. The company’s shares closed yesterday at $35.10, close to its 52-week low of $31.11.

Eyal wrote:

“IMPV reported strong 3Q results and raised its 4Q16 outlook. On the heels of its recent review of strategic alternatives, IMPV’s BoD has taken the view that remaining a standalone company could yield the best outcome from a shareholder value perspective. With that, IMPV is embarking on a restructuring plan aimed at reducing costs and improving its competitive positioning which could drive $15M in annual cost saving by year-end. We believe a strong 4Q could restore some investor confidence in the story and lead to a re-assessment of its strategic alternatives. Management’s initial FY17 revenue direction calls for at least 20% YoY revenue growth.”

According to TipRanks.com, Eyal is a top 100 analyst with an average return of 9.1% and a 56.3% success rate. Eyal covers the Technology sector, focusing on stocks such as CSG Systems International, Nuance Communications, and IAC/InterActiveCorp.

Currently, the analyst consensus on Imperva is Moderate Buy and the average price target is $55, representing a 56.7% upside.

In a report issued on October 20, RBC Capital also maintained a Buy rating on the stock.

Based on Imperva’s latest earnings report from June 30, the company posted quarterly revenue of $57.87M and quarterly net profit of -$24.72M. In comparison, last year the company earned revenue of $63.35M and had a net profit of -$5.75M.

Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is negative on the stock. Most recently, in June 2016, Shlomo Kramer, a Major Shareholder at IMPV sold 75,000 shares for a total of $3,384,157.

Imperva, Inc. provides cyber security solutions, which protect business critical information and applications in the cloud or on premises. The company was founded by Shlomo Kramer, Amichai Shulman and Michael Boodaei on April 10, 2002 and is headquartered in Redwood Shores, CA.