Wedbush Cuts Price Target on Progress Software (PRGS) Following a Weak 1Q

Wedbush maintained a Neutral rating on Progress Software (NASDAQ: PRGS), and cut the price target to $22.00 (from $24.00), following the company's 1Q earnings report. Weakness in OpenEdge direct deals with North American customers looks to be a result of protracted negotiations with a handful of existing customers. However, in a positive step, PRGS authorized a new $100M share repurchase program.

Analyst Steve Koenig commented, "PRGS reported a weak Q1, attributed to slipped OpenEdge enterprise deals and integration issues impacting Telerik’s lead generation and inside sales efforts. Licenses of $24.1M were down about 14% Y/Y in non-GAAP, constant currency terms, leading to a $3M revenue shortfall and $0.02 EPS miss. Revenue of $90M was down 2% Y/Y in constant currency, led by weakness in North America (-7% Y/Y). EMEA was the only region that grew (+10% Y/Y)."

For an analyst ratings summary and ratings history on Progress Software click here. For more ratings news on Progress Software click here.

Shares of Progress Software closed at $25.59 yesterday.

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