Zix Corp target raised to $6.25 from $5 at Topeka Capital Markets; Buy (3.79)
Topeka Capital Markets raises their ZIXI tgt to $6.25 from $5 as notable financial metrics from 4Q14 include record New First Year Orders and a record backlog. While still very small rev contributors, the new DLP and BYOD products are gaining significant traction and should begin to move the rev growth needle as we move through 2015 and beyond. Firm has made a modest downward revision to their 2015 rev ests while maintaining their EPS est of $0.20, helped in part by the aforementioned spending cutback. Firm is also initiating 2016 ests which reflect an acceleration in revenue growth as the two new products start to have some impact and the core email encryption business continues to expand its addressable market opportunity.