UPDATE: D.A. Davidson & Co. Initiates Coverage On RadiSys Corporation On Attractive Turnaround Story

In a report published Thursday, D.A. Davidson & Co. analyst Thomas Diffely initiated coverage on RadiSys Corporation (NASDAQ: RSYS) with a Buy rating and $4.50 price target.

In the report, D.A. Davidson & Co. noted, “Stage is set for a return to profitability. Based on management's refined focus on two key growth segments combined with sizable cost reductions and operational improvements over the past year, we believe the company has set the stage for a return to profitability in 2H'14 and continued margin and earnings expansion through the next couple of years. This speculative turnaround story has generated enough momentum to give the stock an attractive risk reward profile at current levels. We are initiating coverage with a BUY rating and 12-18 month price target of $4.50 (~13x 2016 EPS of $0.35).”

RadiSys Corporation closed on Wednesday at $2.98.