NEW YORK (TheStreet) -- Shares of Imperva (IMPV) - Get Report closed down on heavy volume Monday as Nomura cut its rating on the stock to "neutral" from "buy." The firm has a $50 price target on the stock.
Late last week, Bloomberg reported that Imperva has received takeover interest from Cisco Systems (CSCO) and IBM (IBM).
On Friday, Imperva stock traded up 21% to $52.56 on this news, the firm noted.
"We are downgrading Imperva...after this move. While we believe that Imperva is a logical target for Cisco and IBM and the company's management team are willing sellers, we also believe that Imperva's stock price is now largely baking in a sale of the business, removing potential upside," Nomura wrote in an analyst note earlier today.
Last month, the Redwood City, CA-based cybersecurity software company hiredQatalyst Partners to launch a strategic review.
About 1.46 million of Imperva's shares changed hands today compared to its average volume of 681,356 shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on Imperva stock.
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.
Recently, 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.
You can view the full analysis from the report here: IMPV