SafeNet "buy," target price raised

10/26/06 - Stifel Nicolaus

NEW YORK, October 26 (newratings.com) - Analyst Todd Weller of Stifel Nicolaus & Company reiterates his "buy" rating on SafeNet Inc (SFNT), while revising his estimates for the company. The target price has been raised from $25 to $27.

In a research note published this morning, the analyst mentions that the company has reported robust 3Q revenues, with a strong performance across all its four main business segments. The EPS estimate for 2006 has been raised from $1.12 to $1.13. The EPS estimate for 2007 has been reduced from $1.60 to $1.40 to reflect lower gross and operating margins as well as lower interest income due to repayment of the convert.