Analysts Conflictied on These Technology Names: Rignet (NASDAQ: RNET), Mercury Computer (NASDAQ: MRCY) and Amdocs (NASDAQ: DOX)

By Austin Angelo

Analysts have been eager to weigh in on the Technology sector with new ratings on Rignet (NASDAQ: RNET), Mercury Computer (NASDAQ: MRCY) and Amdocs (NASDAQ: DOX).

Rignet (NASDAQ: RNET)

Jefferies analyst Mike McCormack reiterated a Buy rating on Rignet (NASDAQ: RNET) today and set a price target of $17. The company’s shares closed yesterday at $14.50.

McCormack wrote:

“Following 3Q earnings, we update estimates to reflect continued rig stacking and ARPU pressures, as lower commodity prices drive reduced spend from oil and gas operators. In the face of the continued macro pressure, the company has proven adept at cost cutting; headcount reduction and cost savings led to an EBITDA beat. Meanwhile, strategic initiatives to diversify the revenue base and to expand the addressable market hold some promise, but remain uncertain.”

According to TipRanks.com, McCormack is a top 100 analyst with an average return of 11.5% and a 76.4% success rate. McCormack covers the Technology sector, focusing on stocks such as Fairpoint Communications, Consolidated Comms., and Frontier Comms.

Rignet has an analyst consensus of Moderate Buy, with a price target consensus of $17.

Mercury Computer (NASDAQ: MRCY)

Jefferies analyst Sheila Kahyaoglu reiterated a Hold rating on Mercury Computer (NASDAQ: MRCY) yesterday and set a price target of $27. The company’s shares closed yesterday at $27.27, close to its 52-week high of $28.21.

According to TipRanks.com, Kahyaoglu is a 1-star analyst with an average return of -5.6% and a 56.8% success rate. Kahyaoglu covers the Industrial Goods sector, focusing on stocks such as Transdigm Group Inc., AeroVironment, and Triumph Group.

Mercury Computer has an analyst consensus of Moderate Buy, with a price target consensus of $29.

Amdocs (NASDAQ: DOX)

In a report released yesterday, Jason Kupferberg from Jefferies reiterated a Hold rating on Amdocs (NASDAQ: DOX), with a price target of $58. The company’s shares closed yesterday at $58.35.

Kupferberg observed:

“F17 guidance was in line with ests, but the company is currently not factoring any risk from the potential ATT/Time Warner merger in its guidance. F4Q revs, operating margins and adjusted EPS were also in line. DOX continues to believe that Rest of the World will remain the growth engine going forward. At the company current’s valuation (~15x C17 P/E), risk/reward seem balanced. Overall, a solid qtr. Earlier, DOX reported F4Q16 results and revs of $940.7M (+1.5% y/ y, +1.1% q/q), were in line with JEFe/Street at $940.2M/$939M. Revs were also in line with DOX’s wide guidance range of $920M-$960M. Pro-forma operating margins of 17.1% were also in line with JEFe, which led to adjusted EPS of $0.89, in line with JEFe/Street. To note, lower than JEFe share count helped EPS by $0.01, but higher than JEFe taxes hurt EPS by $0.01. F4Q adjusted EPS was also in line with DOX’s guidance range of $0.85-$0.91. FCF of $125M was below JEFe at $153M, hurt by DSO’s of 79 days, which were up 7 days q/q.”

According to TipRanks.com, Kupferberg is a 5-star analyst with an average return of 9.0% and a 67.7% success rate. Kupferberg covers the Technology sector, focusing on stocks such as Automatic Data Processing, Fidelity National Info, and Science Applications.

Amdocs has an analyst consensus of Moderate Buy, with a price target consensus of $62.