Vasco Data Security International, Inc. (Nasdaq: VDSI) designs, develops, markets, and supports patented user authentication products.
Analysts like Vasco's security tokens, handheld devices, and related software used for authenticating a person's identity to computer networks. VACMAN Controller serves the banking and e-commerce markets, while VACMAN Middleware provides user authentication to existing Radius based environments.
Analysts see continued strong growth for VDSI's products as online e-commerce continues to increase at double-digit rates. Margins remain adequate to good; costs are reasonable. The Reuters FY 2007/FY 2008 EPS consensus estimates for VDSI are $0.67 to $0.89.
Further, the market's recent pullback has taken some the speculative excesses out of VDSI's shares, with shares now reflecting an improved p/e, although keep in mind VDSI remains a high-risk stock.
The First Call mean rating for VDSI is: Buy [13 firms]. Mean 2008 target: $35.00 [high: $45, low: $26].
The risks? Analysts have an eye on corporate tech spending for signs of a slowdown. Analysts are also watching VDSI's core component costs.
Stock Analysis: Vasco Data Security is a high-risk stock not suitable for moderate-risk and low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from VSDI's shares. Sell/Stop Loss if you were to purchase shares in this company: $9
Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.
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