Wedbush Morgan Upgrades Chordiant Software (CHRD) to Buy; Growing Pipeline Could Accelerate Buy-out Interest

May 22, 2009 10:05 AM EDT

Wedbush Morgan upgrades Chordiant Software, Inc. (Nasdaq: CHRD) from Hold to Buy. Price target increased from $3.50 to $4.75.

Wedbush analyst says, "Our checks indicate that CHRD may have recently closed a sizable platform transaction, the first one since the $26m deal with Vodafone (NYSE: VOD) in the December ’07 quarter. While we certainly don’t believe it to be nearly as large as VOD, we believe it could be $5m-$10m, specifically with an Eastern European financial services company."

"We believe backlog may have bottomed last quarter, and now expect a steeper ramp throughout the year...We are conservatively increasing FY:10 revenue to $84m from $79m and EPS to $0.08 from
$0.04, with little change to near-term estimates because of uncertainty around timing of revenue recognition and uncertainty of size. However, we believe material upside still exists...We feel a growing pipeline could accelerate buy-out interest."

To see more analyst ratings on CHRD Click Here.

Chordiant Software, Inc. (Chordiant) is an enterprise software company that delivers products and services designed to improve the customer experience in front-office processes for global companies primarily in the insurance, healthcare, telecommunications and financial services markets.

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