VASCO Data Security gets an Upgrade

ThinkEquity upgrades VASCO Data Security Intl., Inc.'s (NASDAQ:VDSI) today from "Source of Funds" to "Buy". They set a price target $30 and the stock is up 12% since the Masters wrote: VASCO Data Security (VDSI) and the 50% Drop.

We thought this stock was trading at a discount then and now Wall Street is all over it.

Shares of VDSI are now trading at $23.55, the Masters spotted VDSI back on the 21st at $21 a share. ThinkEquity believes the risk in VASCO shares is reflected in the current valuation.

Just to recap since Oct 24th, VDSI shares had fallen 50% (before the 12% move) after missing Q3 analyst's estimates by 2 cents. VASCO Data revenues for Q3 2007 increased 60% over Q3 2006. Their operating income increased 66% over Q3 2006 and the order backlog for Q4 at $33.4 million is best in the Company's history. VASCO reaffirmed their full-year 2007 guidance for revenue growth, gross margins and operating margins on last months earnings call.

On November 19th, Friedman Billings upgraded VDSI to "Outperform" and set a $33 price target. 

Friedman said they were cautious on VASCO heading into 3Q07, but they believe the precipitous decline in shares over the last few weeks is now overdone and represents a buying opportunity. Friedman says recent checks have been positive, as they have not sensed that the malaise from the credit markets/financials has negatively impacted VDSI's business to date.

Read more from the Masters, new today:

Dell's $10 billion share buyback - It's an all out Buy

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