Keep It Simple Stupid - Buy This Misunderstood Tech Name For 35% Upside

Mar 19 2013, 17:08 by: Josh Burwick | about: BLOX, includes: CSCO, FIRE, FTNT, JIVE, JNPR, NOW, QLIK, SWI

Infoblox (BLOX), a recent 2012 IPO, has exposure to almost every secular theme in technology minus a crazy multiple. Excluding a dip late last year related to lockup expiration, the stock has been mired in a narrow $18-23 range. The stock trades at 3.7x EV to 2013 revenue, not a hefty multiple for a dominant software player in a sector ready to inflect. On a relative basis, BLOX trades at a sharp discount to every comparable small-mid cap software company with similar growth. Infoblox suffers from lack of analyst coverage, no direct comparables, and confusion as to what area of technology they really occupy. Infoblox is a beneficiary of every major secular technology theme: cloud, virtualization, IPV6,...