He also increased his price target on the security software company to $34 from $20, and increased his 2007 estimates on the company; he now sees $319.6 million in revenue and EPS of $1.31 a share, up from $315 million and $1.22. In part, the higher estimates reflect an expectation that the company’s stock-option backdating probe is nearing completion, resulting in reduced related expense levels.
Ives also thinks the company could be an attractive buyout candidate, putting its break-up value at $30 to $36 a share; he says buyers could be attracted by its classified security business, which he calls the company’s “crown jewel.”
The company plans to report fourth quarter results on March 7; the announcement was originally scheduled for February 23, but was postponed.
SafeNet yesterday was down 87 cents at $26.89. (That’s roughly in line with yesterday’s 3.5% decline on the Nasdaq Composite.)
SFNT 1-yr chart