UPDATE: Imperial Capital Downgrades Datawatch

Datawatch Corporation's (NASDAQ: DWCH) path toward fast revenue growth is proving longer than expected and won't reach an inflection point until late in 2015, an analyst said Friday.

Datawatch is off more than 17 percent since posting fiscal fourth-quarter results Wednesday that revealed recent revenue growth of just 3 percent.

The company has been traded since 1992, but last year embarked on a major transition to new technology based on "visual recognition" of data.

Imperial Capital's Michael Kim slashed his price target 44 percent Friday to $10 and downgraded the company to In-Line from Outperform.

Datawatch traded recently unchanged at $9.16 per share.

"Revenue performance has been inconsistent," Kim said, noting a slowing sales cycle and a lower rate at which deals in its pipeline were concluded in the recent quarter.

Chief Executive Michael A. Morrison reiterated a long-term goal of annual revenue growth of 30 percent.

Speaking to investors Thursday, Morrison didn't predict that growth rate for next year, but added he had "quite a confidence here" that the coming year will see "the inflection in our revenue growth curve."