The Santa Clara, CA-based company provides enterprise and service provider-class solutions to automate management of the critical network infrastructure services.
The new price target comes after Infoblox preannounced its preliminary 2016 fiscal second quarter results yesterday. The company expects earnings per share to be between 16 cents and 17 cents on revenue in the range of $95 million to $96 million.
This beat consensus and JMP Securities' estimates for earnings per share of 13 cents on revenue of $94.1 million. JMP had forecasted revenue of $94.5 million.
"In addition, we believe Infoblox is well positioned to leverage threat intelligence from the IID acquisition to drive deeper penetration of the DNS firewall service across its large installed base," the firm said in an analyst note.
Infoblox also announced yesterday that it purchased IID, a private cyber threat intelligence company, for $45 million in cash.
The lower price target reflects 55% potential upside from current levels, JMP Securities noted.
Shares of Infoblox closed up by 0.47% to $14.86 on heavy trading volume on Tuesday.
About 1.15 million of the company's shares were traded today, compared to its average volume of 679,294 shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income.
As a counter to these strengths, the team finds that the stock has had a generally disappointing performance in the past year.
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: BLOXBLOX data by YCharts