Imperva (IMPV) Stock Closed Lower, Deutsche Bank Downgrades

Imperva (IMPV) stock was down at market close as Deutsche Bank downgraded the company's stock to 'hold' this morning after the company warned investors of disappointing 2016 second quarter results.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Imperva (IMPV) - Get Report closed lower by 2.12% at $47.12 on Tuesday, as Deutsche Bank downgraded the stock to "hold" from "buy" this morning. 

The firm lowered the price target for the Redwood Shores, CA-based cyber security provider to $43 from $45. 

The downgrade comes as Imperva gave a grim forecast of its fiscal 2016 second quarter results, blaming "longer sales cycles and smaller deals sizes for the weakness in the quarter," according to the analyst note. 

On the upside, Imperva hired Qatalyst Partners to find a potential buyer for it, and an activist investor disclosed a stake of about 10% in the company, but Deutsche says these catalysts may not be enough to turn the stock around. 

"These factors could be a catalyst and drive upside for the stock, but given the uncertainty on when these factors would play out, and the risk of further downside when the company reports on August 4 and guides for or Q3'16 and FY16, we feel the risk/reward is balanced," Deutsche said. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate IMPERVA INC as a Sell with a ratings score of D. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: IMPV

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