Why Acme Packet Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Acme Packet (UNKNOWN: APKT.DL  ) jumped today by as much as 13% after the company received an analyst upgrade.

So what: Stifel Nicolaus boosted its rating on shares from hold to buy along with a price target of $27, representing considerable upside even from today's high. Analyst Sanjiv Wadhwani increased top and bottom line estimates for the year on expectations that Acme Packet will benefit from the rollout of Voice over LTE, or VoLTE.

Now what: The VoLTE storyline has been expected before, and Acme Packet faced headwinds last year when VoLTE deployments were delayed until this year at major carriers. Wadhwani expects deployment activity to ramp up meaningfully in the third and fourth quarters, which will benefit Acme Packet's session border controller sales. The analyst expects Acme Packet to generate $303 million in sales and $0.51 per share in earnings in 2013.

Interested in more info on Acme Packet? Add it to your watchlist by clicking here.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2179654, ~/Articles/ArticleHandler.aspx, 9/29/2016 4:29:01 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 6 hours ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
APKT.DL $0.00 Down +0.00 +0.00%
Acme Packet CAPS Rating: ***