Collins Stewart Cuts Price Target on BMC Software (BMC), Rumors Rise Ahead of Earnings
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Price: $46.30 --0%
Rating Summary:
6 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 16 | New: 4
Rating Summary:
6 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 16 | New: 4
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Collins Stewart is maintaining its Buy rating on shares of BMC Software (NASDAQ: BMC), but is reducing its price target from $62 to $50 following increased uncertainty.
The firm notes that shares of BMC fell roughly 10 percent on October 7 following rumors of a senior sales turnover in the company's ESM business and on concerns of a potential shortfall in second quarter results.
Management at BMC acknowledged the rumors on the same day and highlighted that it is company policy not to comment on them ahead of earnings. The company also noted that they are only obligated to report the release of named officers outside of this period, not senior sales managers.
An analyst at Collins Stewart Comments, "We viewed BMC's F1Q12 ESM license miss as mostly attributable to sales execution so senior sales turnover is possible in our opinion. This miss turned off growth investors to BMC even after BMC had lost its base of value/GARP investors who viewed the stock as too expensive after its run early this year. While current markets remain highly volatile with a shoot-first mentality, BMC at current levels could again attract value/GARP-oriented investors."
For Q2 and FY12, the firm is currently estimating EPS of $0.80 and $3.31. Collin's estimates indicate a loss for the second quarter year over year.
For more ratings news on BMC Software click here and for the rating history of BMC Software click here.
Shares of BMC Software closed at $36.98 yesterday.
The firm notes that shares of BMC fell roughly 10 percent on October 7 following rumors of a senior sales turnover in the company's ESM business and on concerns of a potential shortfall in second quarter results.
Management at BMC acknowledged the rumors on the same day and highlighted that it is company policy not to comment on them ahead of earnings. The company also noted that they are only obligated to report the release of named officers outside of this period, not senior sales managers.
An analyst at Collins Stewart Comments, "We viewed BMC's F1Q12 ESM license miss as mostly attributable to sales execution so senior sales turnover is possible in our opinion. This miss turned off growth investors to BMC even after BMC had lost its base of value/GARP investors who viewed the stock as too expensive after its run early this year. While current markets remain highly volatile with a shoot-first mentality, BMC at current levels could again attract value/GARP-oriented investors."
For Q2 and FY12, the firm is currently estimating EPS of $0.80 and $3.31. Collin's estimates indicate a loss for the second quarter year over year.
For more ratings news on BMC Software click here and for the rating history of BMC Software click here.
Shares of BMC Software closed at $36.98 yesterday.
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