Competing with a varied mix of hardware, software, and integrated rivals like Danaher (NYSE:DHR), IBM (NYSE:IBM), and CA (NASDAQ:CA) is no picnic, but NetScout Systems (NASDAQ:NTCT) believes it has found a winning combination with a mixed hardware and software approach to network and application performance management. The company still generates the bulk of its revenue from three verticals (finance, telecom services, government), but the relatively new nGeniusONE platform should meaningfully expand its addressable market and could fuel strong growth for multiple years. While backward-looking valuation metrics may not scream "bargain" on these shares, high single-digit free cash flow would support a fair value in the mid-$40s.
They Don't Make Networks, They Make...
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