aBlue Coat Systems (NASDAQ:BCSI) Attractive M&A Candidate Says Needham

Citing their position at the "intersection of networking and security software," Blue Coat Systems (NASDAQ:BCSI) is considered an attracted candidate for M&A by Needham & Company.

Needham said, "We attended the BCSI analyst day and came away comfortable with our thesis, which is that the company is a work-in-progress with a new CEO, and is an attractive M&A candidate because of its position at the intersection of networking and security software. While there were no dramatic new announcements, we want to focus investor attention on the 'small steps' which are happening since CEO Borman’s arrival in August. Among the 'small steps' are: solid OctQ results with “trimmed” (yet acceptable) guidance; rolling out incentives to the channel to build BCSI’s WAN business presence; enacting changes in the field organization (leadership, and lead generation). Specifically from analyst day, we heard about new product initiatives which are logical, yet may not impact revenue materially in the near term – including SMB product, cloud offering, and Cache for Carrier."

Needham & Company maintains a "Buy" rating on Blue Coat Systems, which was trading at $28.40, down $0.10, or 0.33 percent, as of 2:55 PM EST. They have a price target of $33 on them.