Barrington Research Starts RightNow Tech (RNOW) at Outperform, Forecasts Margin & Revenue Growth
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Price: $43.00 --0%
Rating Summary:
3 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Rating Summary:
3 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
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Barrington Research initiated coverage on shares of RightNow Technologies (Nasdaq: RNOW) today with an Outperform rating and $35.50 price target.
The firm reports that RNOW's pricing is evenly distributed throughout its web/social support sessions and call-center seats, although the growth in social and mobile interactions between consumers and corporations results in higher fees paid to RightNow.
Antiquated call-center solutions and the proliferation of social, mobile, and web are driving a replacement cycle, which the firm believes will last another five to ten years. Barrington Research anticipates that RNOW will be on a short list for any consumer-experience project.
Barrington Research forecasts that the company's annual addressable market is roughly $5 billion and believes that RNOW has not even penetrated less than 20 percent of its current customers potential.
For 2011, the firm is estimating $226.5 million in revenue and EPS of $0.58. For 2012, Barrington estimates 19 percent revenue growth to $268.7 million with EPS of $0.84. Operating margins are expected to increase by 430 bps year-over-year to 14.7 percent in 2012.
Shares of RNOW are currently trading up 1.19 percent or $0.35 to $29.76. Shares opened roughly 8 percent higher day-over-day.
The firm reports that RNOW's pricing is evenly distributed throughout its web/social support sessions and call-center seats, although the growth in social and mobile interactions between consumers and corporations results in higher fees paid to RightNow.
Antiquated call-center solutions and the proliferation of social, mobile, and web are driving a replacement cycle, which the firm believes will last another five to ten years. Barrington Research anticipates that RNOW will be on a short list for any consumer-experience project.
Barrington Research forecasts that the company's annual addressable market is roughly $5 billion and believes that RNOW has not even penetrated less than 20 percent of its current customers potential.
For 2011, the firm is estimating $226.5 million in revenue and EPS of $0.58. For 2012, Barrington estimates 19 percent revenue growth to $268.7 million with EPS of $0.84. Operating margins are expected to increase by 430 bps year-over-year to 14.7 percent in 2012.
Shares of RNOW are currently trading up 1.19 percent or $0.35 to $29.76. Shares opened roughly 8 percent higher day-over-day.
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