Ahead of the Bell: Wind River Systems

Earlier this month, Wind River forecast first-quarter sales below Wall Street expectations.

In a client note last week, Citi Investment Research analyst John Reilly Walsh said the company's sales growth slowed in fiscal 2007 to 7 percent, but grew to 15 percent in fiscal 2008.

Looking ahead, Walsh said sales growth can stabilize in the low double-digits in fiscal 2009, and he expects 10 percent sales growth for the year.

Walsh, who has a "Hold" rating on the stock, said there aren't any near-term catalysts to push the shares higher, but believes operating margins may rise above 10 percent for the first time this decade.

Walsh's $8 price target implies upside of nearly 9 percent to Tuesday's $7.35 closing price.

Six analysts rate the stock at the equivalent of "Buy," while five analysts have a "Neutral" rating.

Wind River is based in Alameda, Calif.