Needham & Company Raises price Target on Pros Holdings (PRO) Following Solid 3Q
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Needham & Company reiterated a Buy rating on PROS Holdings (NYSE: PRO), and raised the price target to $25.00 (from $22.00), following the company's 3Q earnings report. PRO reported revenue of $38.4mm, ahead of $35.6mm estimates. EPS of ($0.19) also beat ($0.35) estimates.
Analyst Scott Berg commented, "Pros reported another strong execution quarter with subscription bookings, subscription revenues and cost controls that exceeded expectations. New ARR bookings as a percent of new ACV were its highest to date through the Cloud transition which we believe is a strong indication that Y/Y revenue growth optics will trough in 4Q or 1Q17 enabling acceleration throughout FY18. We like the company's intentions to start a migration program as we believe customer conversions could pick up steam in FY17 that can drive incremental revenue upside in 2H17 and FY18. We raise our PT to $25 believing the optics acceleration will drive valuation more towards 4.5x EV/FY17 revenues or 3.5x our preliminary FY18 estimates which is historically more in line with like companies exiting the trough phase of the Cloud transition."
Shares of PROS Holdings closed at $21.80 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesNeedham & Company, Earnings
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