Piper Jaffray analyst Andrew Nowinski has downgraded his call on Imperva Inc. to "neutral" from "overweight" following a significant decline in the company's demand trends.
No resellers in a recent Piper survey reported results above plan this quarter, Nowinski wrote in his report. Recent resignations of Imperva's CEO and CFO played a major role in weakening the demand trends, the analyst says, adding that he anticipates potential for downside to the fiscal year 2018 revenue estimate.
The Piper Jaffray analyst further sees little room for significant expansion above the current valuation since the company's mid-teens fiscal year 2018 growth is below the peer group average of 20%.
In addition to the downgrade, Nowinski cut his price target on the stock to $42 from $58.