UPDATE: Jefferies Raises Price Target On Radiant Systems (RADS)

Jefferies & Co. is raising its price target on shares of Radiant Systems RADS to $23 from $22, and it has a Buy rating following earnings. In a note to investors, Jefferies writes, "RADS demonstrated its focus on innovation at the analyst day as a key differentiator in the hospitality market. Mgmt believe the business can achieve +10% rev growth coupled with 100bp margin expansion over coming years. We continue to like the stock given superior systems growth, expanding margins and an undemanding valuation. We remain a BUY. RADS held a positive analyst day yesterday. Medium-term, Management is guiding to 10% Y/Y sales growth with strong trends in SaaS and international growth and 100bp of operating margin expansion a year, driven mostly by higher GM due to mix. We viewed the customer panel and future product demos as positive. The stock is also cheaper than its biggest public competitor, despite higher organic growth." Shares of RADS are up 27 cents to $19.92, a gain of 1.4% this morning.