OPNET a Small-Cap Tech Play

OPNET Technologies (OPNT - Analyst Report) is a provider of management software for networks and applications. With its analytical capabilities, OPNET solutions provide powerful modeling tools to rapidly troubleshoot and resolve performance problems and even prevent problems before they occur. By comparison, traditional solutions are more reactive in nature.

With encouraging results in the first half of fiscal year 2009, new license revenue growth has accelerated to its highest levels ever. We believe that changes in OPNET's sales process are paying off, and the company will be able to post growth going forward.

Growth in high margin license revenue will also help demonstrate operating leverage over the coming quarters. We therefore maintain our Buy recommendation but lower our target price to $12.50 due to the weak economy.

Anita Mohata contributed to this report.

Read the full analyst report on OPNT