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Research Alert: CFRA Maintains Hold Opinion On Shares Of Netscout Systems, Inc.

05/10/2021 12:38

04:35 PM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target price at $35, 20.1x our FY 22 (Mar.) EPS estimate, a discount to its three-year historical average P/E at 28.0x, reflecting our soft growth outlook. We keep our FY 22 EPS estimate at $1.74 and set FY 23's at $1.92. NTCT reported Mar-Q operating EPS of $0.49 vs. $0.50, $0.04 above the consensus. Mar-Q revenue declined 7%, with 5% growth in the service provider vertical, primarily related to a Tier 1 North American carrier completing an initial purchase of NTCT's solutions for a 5G network, offset by a 19% decline in the enterprise vertical, due to lower spending in the federal government sector and a decrease in ancillary product lines, like Fluke Systems. We expect to see additional momentum with service provider customers in the coming quarters as companies move to deploy 5G standalone networks as well as a number of private 5G networks.