* Lazard raises price target to $11 from $10; rating buy
* Piper raises price target to $12.50 from $9.50; rating overweight
* Both brokerages see solid Q3 sales from sales execution
* Shares rise as much as 12 percent
April 6 (Reuters) - Internet phone services provider ShoreTel Inc's quarterly sales will likely exceed consensus estimates, said analysts at Lazard Capital Markets and Piper Jaffray, who raised their price target on the stock.
Shares of ShoreTel rose as much as 12 percent to $10.02 -- their highest in more than 3 years -- and were trading up more than 7 percent at $9.60 in morning trade on Nasdaq.
'The company has been aggressively adding sales headcount for over a year, while concurrently the budget for phones continues to thaw after facing relatively low priority during the recession,' Lazard analyst Ryan Hutchinson said in a note.
Channel checks have been overwhelmingly favorable with strong demand in both the United States and European markets, Piper Jaffray analyst Troy Jensen said and expects ShoreTel to grow 18-20 percent over the next two years.
In January, the company forecast revenue of $48-$51 million for the third quarter. Lazard expects revenue above its estimate of $49.9 million, while Piper estimates $50 million.
Piper also said ShoreTel is continuing to take share in LAN telephony segment at Cisco's expense. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Saumyadeb Chakrabarty) (aruna.jennifer@thomsonreuter.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aruna.jennifer.thomsonreuters.com@reuters.net)
Keywords: SHORETEL/RESEARCH LAZARD
COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Piper raises price target to $12.50 from $9.50; rating overweight
* Both brokerages see solid Q3 sales from sales execution
* Shares rise as much as 12 percent
April 6 (Reuters) - Internet phone services provider ShoreTel Inc's quarterly sales will likely exceed consensus estimates, said analysts at Lazard Capital Markets and Piper Jaffray, who raised their price target on the stock.
Shares of ShoreTel rose as much as 12 percent to $10.02 -- their highest in more than 3 years -- and were trading up more than 7 percent at $9.60 in morning trade on Nasdaq.
'The company has been aggressively adding sales headcount for over a year, while concurrently the budget for phones continues to thaw after facing relatively low priority during the recession,' Lazard analyst Ryan Hutchinson said in a note.
Channel checks have been overwhelmingly favorable with strong demand in both the United States and European markets, Piper Jaffray analyst Troy Jensen said and expects ShoreTel to grow 18-20 percent over the next two years.
In January, the company forecast revenue of $48-$51 million for the third quarter. Lazard expects revenue above its estimate of $49.9 million, while Piper estimates $50 million.
Piper also said ShoreTel is continuing to take share in LAN telephony segment at Cisco's expense. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Saumyadeb Chakrabarty) (aruna.jennifer@thomsonreuter.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aruna.jennifer.thomsonreuters.com@reuters.net)
Keywords: SHORETEL/RESEARCH LAZARD
COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2011 AFX News