J.P. Morgan Raises PT on Websense from $20.50 to $26

J.P. Morgan has published a report on Websense (NASDAQ: WBSN) reviewing 2Q earnings for the Internet and network security company.

In the report, J.P. Morgan wrote, "WBSN 2Q11 saw slight billing beat, guidance was reiterated, but EPS and CFO was light. The company is sticking to its guns about reaccelerating billings in the 2H, but outside of easy comparisons we think it is not easy. The incremental billings up 12% combined with better renewal rates in Triton is helpful, but we believe we will have to see 20%+ incremental billings growth to reach 10% overall billings growth, and that is not easy and could limit stock performance from here. Slight billings beat, but EPS and CFO light. WBSN reported Billings/Revenue/Non-GAAP EPS of $85.9M/$90.7M/$0.35 compared to our estimates of $85.1M/$89.9M/$0.38 and consensus of N.A./$89.7M/$0.38."

J.P. Morgan rated Websense an Underweight with a price target raised from $20.50 to $26.00. Websense closed Tuesday at $25.90.