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Wachovia Reduces Outlook for the Software Sector - Downgrades BLKB, PROJ and VMW to Hold

October 6, 2008 8:53 AM EDT
BLKB Hot Sheet
Rating Summary:
    0 Buy, 1 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Wachovia analyst says, "We are reducing our outlook for the software sector in general, based on recent
channel checks, deteriorating economic news, and credit issues within the channel...We are downgrading Blackbaud (Nasdaq: BLKB), Deltek (Nasdaq: PROJ) and VMware (NYSE: VMW), as we believe they have particularly acute issues due to their customer base segmentation, and/or growth expectations...We continue to see stock outperformance in highly-diversified companies such as Oracle (Nasdaq: ORCL), in the Security segment (McAfee (NYSE: MFE) and ArcSight (Nasdaq: ARST)) and in the On-demand segment (CRM and VOCS). We also continue to recommend Adobe (Nasdaq: ADBE) due to the likely strength of its upcoming new product cycle."

Blackbaud, Inc. is a provider of software and related services designed specifically for non-profit organizations.

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