Jefferies Raising Price Target On Syniverse (SVR)

Jefferies & Co. is raising its price target on shares of Syniverse SVR to $26 from $23 after the technology company reported a solid quarter and raised its outlook. Jefferies rates Syniverse as a Buy. In the report Jefferies notes, "SVR delivered a solid quarter and raised 2010 guidance. We like the strong messaging growth and improving roaming volumes. We believe the revised guidance remains conservative and upside from networking segment and data traffic could further boost the top line. Maintain Buy." Further along in the report Jefferies writes, "Our $26 PT is 12x our current 2011 cash EPS est of $2.11, in line with what we think is a sustainable revenue growth rate. Risks include increased carrier consolidation that could reduce roaming/clearing activity, integration risk, significant financial leverage, a history of carrier-induced pricing pressure, and legacy products that could decline faster than expected." Shares of Syniverse are up 22 cents this morning to $22.72.