NEW YORK (TheStreet) -- Shares of Infoblox (BLOX were rising in mid-afternoon trading on Thursday after the company posted better-than-expected earnings and revenue for the 2016 fiscal fourth quarter.
After yesterday's closing bell, the Santa Clara, CA-based network infrastructure enterprise and service provider posted earnings of 8 cents per diluted share, topping analysts' projections of 6 cents per share.
Revenue for the quarter was $86.3 million, also above analysts' forecasts of $84.5 million.
Infoblox also gave positive guidance for the current period and fiscal full year.
JMP Securities upped its price target to $25 from $22 and maintained its "market outperform" rating on the stock earlier today.
"The company's improvement in operating margin is the result of cost-cutting measures the company has undergone after activist investor, Starboard Value, took a position in the company and we believe the cuts are enhancing the company's appeal to prospective buyers," the firm wrote in a note.
JMP believe the quarterly results and outlook make Infoblox a more attractive acquisition candidate for private equity investors. The company is reportedly in an auction process with private equity investors, the firm noted.
More than 2.52 million of the company's shares changed hands so far today vs. its average 30-day volume of 613,792 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. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
But the team also finds weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing 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: BLOX