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What: Shares of Acme Packet (NASDAQ:APKT) 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.
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