Gigamon: Take-Out By a 'Strategic' Buyer Could be $55 to $60, Says Needham

Shares of network test equipment maker Gigamon  (GIMO) got a lift late Monday on a report from Reuters's Liana Baker and Michael Flaherty stating that the company is being circled by activist investors Elliott Management  for a possible buyout, citing multiple unnamed sources.

The shares today are down 5 cents at $43.45. Gigamon is down almost 5% for the year to date, and down 7% in the past twelve months.

Alex Henderson with Needham & Co., who rates the stock a Buy, with a $50 target, writes that Gigamon shares are a "win-win" either way: "either it rebounds operations and appreciates as a stand alone company or Elliott takes it out."

"Under both scenerios we think GIMO hits our $50 TP and likely has good performance between now and year-end."

Henderson also sees the prospect the company is "put into play," and perhaps the target of a strategic buyer such as Hewlett Packard Enterprise (HPE) or Oracle (ORCL), in which case it could be worth $55 to $60.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Technology , Stocks
Referenced Symbols: HPE , ORCL

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