Shares of Electronics for Imaging Inc. (NASDAQ:EFII) jumped 9.6% on Monday after an analyst offered an encouraging note regarding shares of the digital printing technology specialist.
Electronics for Imaging stock plummeted more than 40% on Friday after the company postponed its second-quarter call to "complete an assessment of the timing of recognition of revenue." It also suggested that its disclosure controls "were not effective in prior periods."
Given that massive drop, however, Needham & Company analyst James Ricchiuti reiterated his buy rating on EFII shares this morning. But he also reduced his price target to $38 from $53. For perspective, Electronics for Imaging stock closed today at $28.55 per share.
To be fair, EFII did note in Friday's press release that "total aggregate revenue for the periods under review will not be materially different from the aggregate revenue that was previously reported for those periods [...]." But such internal control shortfalls have understandably damaged investors' confidence in the company, and it's no surprise that shares trade far below the levels at which they stood prior to last week's announcement. So while I'm not particularly anxious to pick up shares myself, I won't be surprised if they ultimately claw their way back as the company continues working to resolve its accounting woes.