Oppenheimer Reiterates a Hold Rating on A10 Networks

By Jason Carr

Oppenheimer analyst Ittai Kidron reiterated a Hold rating on A10 Networks (NYSE: ATEN) today. The company’s shares opened today at $6.15, close to its 52-week high of $10.87.

Kidron commented:

“Consistent with its 7/14/17 preannouncement, A10 reported weak 2Q17 results, which were accompanied by soft 3Q17 guidance. The company attributed the miss to a number of delayed deals, and it’s our belief that the timing of many of these deals remains uncertain. Given the weak results/guidance, it appears that A10 will be challenged to deliver anything better than low-single-digit revenue growth for 2017, a meaningful slowdown. While the company continues to make progress on its security expansion (26% of product revenue in 1H17), the quarter indicated that execution remains an issue, with this the second quarter of “delayed deals” in less than a year. The new CFO could help by improving processes, but we’d wait for more consistency before getting more constructive.”

According to TipRanks.com, Kidron is a 4-star analyst with an average return of 8.2% and a 62.6% success rate. Kidron covers the Consumer Goods sector, focusing on stocks such as Brocade Communication Systems Inc, Hewlett Packard Enterprise, and Advanced Micro Devices.

Currently, the analyst consensus on A10 Networks is Moderate Buy and the average price target is $9, representing a 46.3% upside.

In a report issued on July 14, KeyBanc also downgraded the stock to Hold.

Based on A10 Networks’ latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $60.29 million and GAAP net loss of $3.9 million. In comparison, last year the company earned revenue of $57.13 million and had a GAAP net loss of $4.94 million.

Based on the recent corporate insider activity of 60 insiders, corporate insider sentiment is negative on the stock. Most recently, in May 2017, Raymond Smets, the VP WW Sales of ATEN sold 6,890 shares for a total of $56,222.

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A10 Networks, Inc. engages in the provision of application networking solutions. It offers cloud storage, enterprise solutions, security products, data center, application delivery, load balancing, and distributed denial of service protection. The company was founded by Lee Chen in 2004 and is headquartered in San Jose, CA.