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Compass Point Upgrades MICROS Systems (MCRS) to Buy

November 29, 2012 8:43 AM EST Send to a Friend
Get Alerts MCRS Hot Sheet
Price: $67.99 --0%

Rating Summary:
    0 Buy, 10 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 15 | Down: 16 | New: 67
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Compass Point upgraded MICROS Systems (NASDAQ: MCRS) from Neutral to Buy with a price target of $50.00.

The firm comments, "We are upgrading our rating from Neutral to Buy. Our price target remains $50. Our estimates are unchanged. In May the shares traded around $58. Yesterday the shares closed near $43. That's down about 26%, albeit from a lofty valuation. The current price is now barely above the 52 week low of $42.95. In our view, the pullback is related to near-term issues and represents a disconnect from long-term fundamentals. Specifically, today's price appears to reflect the modest +1.4% organic revenue growth reported in 1Q'FY'13 related to (1) uncertainty surrounding the election, (2) reduced growth rates in EMEA, and (3) the effect of the Olympics in the UK - all of which are not recurring - in addition to other factors like the Fiscal Cliff rather than on the potential earnings power of management's FY'16 $2 billion revenue target. Accordingly, we now recommend the shares."

For an analyst ratings summary and ratings history on MICROS Systems click here. For more ratings news on MICROS Systems click here.

Shares of MICROS Systems closed at $43.15 yesterday.




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