Social Media Security Deals Spur Radware Rally
Radware Ltd. (RDWR), the Israeli technology company trading at double valuations relative to the Nasdaq telecommunications index, rose to a two-week high in New York after receiving orders from social networking companies.
Shares of the Tel Aviv-based company climbed 0.9 percent to $37.26 yesterday, pushing valuations to 40 times reported earnings, twice the average multiple for companies on the Nasdaq Telecom Index, according to data compiled by Bloomberg. Prolor Biotech Inc. (PBTH) led declines on the Bloomberg Israel-US Equity Index. (ISRA25BN) The gauge for the largest Israeli companies traded in New York fell 0.1 percent to 89.12.
Radware, whose 27 percent gain this year has outperformed the Nasdaq index’s rise, is benefiting from mounting demand for security software after Sony Corp. and Citigroup Inc. were targets of cyber attacks. Two U.S.-based social networking companies will buy the technology in deals valued at “multi- million” dollars, Radware said in a statement distributed by PRNewswire yesterday, without identifying the buyers or disclosing the exact amount.