UBS on U.S. Software: Cutting Estimates and Price Targets - Wait Until Aug/Sept to Take Action

July 13, 2012 12:32 PM EDT Send to a Friend
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Price: $31.68 -0.97%

Rating Summary:
    12 Buy, 12 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 20 | Down: 27 | New: 8
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UBS on U.S. Software: Updating Estimates and Price Targets - Wait until Aug/Sept to Take Action

Analyst, BrentThill, said, "Q2 pre announcements from Informatica (Nasdaq: INFA) and Qlik Technologies (Nasdaq: QLIK) gave investors insight into a much tougher macro environment in Europe and the US resulting in a larger number of delayed deals, especially in the last few weeks of June. We believe this contagion could spread (albeit to a lesser magnitude) to a number of other co’s in our universe and are cutting ests and adjusting PTs based on: exposure to Europe, potential for deal delays, FX impact, visibility, pricing and ASPs. While many of our names have traded down in recent weeks, we recommend caution going into Q2 results as stock prices could remain volatile until August and September.

Modest estimate cuts: Autodesk (Nasdaq: ADSK), Check Point (Nasdaq: CHKP), Fortinet (Nasdaq: FTNT), MicroStrategy (Nasdaq: MSTR), Nuance Comm (Nasdaq: NUAN), Teradata (NSYE: TDC), VMWare (NYSE: VMW).

Slight estimate cuts: Concur Technologies (Nasdaq: CNQR), salesforce.com (NYSE: CRM), Citrix Systems (Nasdaq: CTXS), Jive Software (Nasdaq: JIVE), TIBCO Software (Nasdaq: TIBX).

No cuts or recently updated: Adobe (Nasdaq: ADBE), Sourcefire (Nasdaq: FIRE), Informatica (Nasdaq: INFA), Intuit (Nasdaq: INTU), Microsoft (Nasdaq: MSFT), Qlik (Nasdaq: QLIK), Oracle (Nasdaq: ORCL), Red Hat (NYSE: RHT), and Sycamore (Nasdaq: SYMC).

UBS lowers price targets for ADSK ($40 from $43), CHKP ($65 from $69), CRM ($180 from $190), NUAN ($29 from $30), TDC ($67 from $78), TIBX ($35 from $37).




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