Wedbush Downgrades Chordiant Software (CHRD) to Neutral; Cuts Estimates and PT

November 20, 2009 8:51 AM EST

Wedbush downgrades Chordiant Software (Nasdaq: CHRD) from Outperform to Neutral. Price target lowered from $4.75 to $3.50.

Wedbush analyst says, "We are disappointed in CHRD’s lack of ability to drive growth from its smaller ASP front-office apps, and with CHRD seemingly still focused on building pipeline with larger but lumpier deals, we believe execution risk is heightened and profitability uncertain, which should cause shares to remain at deeply discounted levels."

"We lowered estimates and are modeling a more back-end loaded FY:10. CHRD expects FY:10 to generate at least flat licenses and professional services, but assumes a big ramp in revenue in Q2-Q4. We lowered revenue to $78.7m from $80.1m and EPS to $0.02 from $0.08, now assuming at 2.1% operating margin versus 4.6% previously."

To see all the upgrades/downgrades on shares of CHRD, visit our Analyst Ratings page.

Chordiant Software, Inc. provides products and services designed to improve the customer experience in front-office processes in North America and Europe.

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