Benzinga | Jan 7, 2022 01:05PM EST

Jefferies Cuts IronNet Target Price By 29%

* Jefferies analyst Joseph Gallo lowered the price target on IronNet Inc (NYSE:IRNT) to $4.25 from $6 and kept a Hold rating.

* The price target implies an upside of 11.3% to January 5, 2022, closing price of $3.82.

* Software underperformed the S&P 500 by 15% in 2021 as overall valuations contracted 10%, noted the analyst.

* Gallo thinks multiples in the space will continue to compress in 2022 as 80% of software names will likely decelerate with "digital digestion" coming out of the pandemic.

* Price Action: IRNT shares traded higher by 5.45% at $3.87 in the premarket session on the last check Friday.