Jefferies Trims Price Target & Estimates on Parametric Tech. (PMTC), Channel Survey Suggest Soft Patch
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Price: $32.38 -0.61%
Rating Summary:
6 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is maintaining its Buy rating on shares of Parametric Technology (NASDAQ: PMTC), but is lowering its price target by $1 to $27.
The firm notes that recent channel survey shows a "soft patch" in the economy which is leading them to reduce their estimates.
Jefferies cut its Q3 EPS estimate by $0.01 to $0.28 and has its revenue estimate currently set at $275 million for the quarter, well below the Street's forecasts of $0.30 and $281 million in revenue. The company released its Q3 guidance with an EPS range of $0.28-$0.32 and a revenue range of $275-$285 million. Jefferies is also cutting its FY11 and FY12 EPS estimates from $1.24 and $1.49 to $1.20 and $1.44.
The firm notes that its July 11 survey shows a 5 percent decline in for FY11 license growth than its March 11 survey suggested. Growth is now only expected to be 9 percent year-over-year, March survey forecasted 14 percent.
An analyst at Jefferies comments, "Comments on the current quarter suggest flat license growth from March to June which is similar to our last survey and is slightly below our revised model. The view on general macro economic trends have also weakened."
80 percent of the respondents in the firms survey believe that Windchill 10 is a positive demand catalyst. Two-thirds of the participants anticipate that the Creo release will make PMTC more competitive in the CAD market.
For more ratings news on Parametric Technology click here and for the rating history of Parametric Technology click here.
Shares of Parametric Technology closed at $23.54 yesterday.
The firm notes that recent channel survey shows a "soft patch" in the economy which is leading them to reduce their estimates.
Jefferies cut its Q3 EPS estimate by $0.01 to $0.28 and has its revenue estimate currently set at $275 million for the quarter, well below the Street's forecasts of $0.30 and $281 million in revenue. The company released its Q3 guidance with an EPS range of $0.28-$0.32 and a revenue range of $275-$285 million. Jefferies is also cutting its FY11 and FY12 EPS estimates from $1.24 and $1.49 to $1.20 and $1.44.
The firm notes that its July 11 survey shows a 5 percent decline in for FY11 license growth than its March 11 survey suggested. Growth is now only expected to be 9 percent year-over-year, March survey forecasted 14 percent.
An analyst at Jefferies comments, "Comments on the current quarter suggest flat license growth from March to June which is similar to our last survey and is slightly below our revised model. The view on general macro economic trends have also weakened."
80 percent of the respondents in the firms survey believe that Windchill 10 is a positive demand catalyst. Two-thirds of the participants anticipate that the Creo release will make PMTC more competitive in the CAD market.
For more ratings news on Parametric Technology click here and for the rating history of Parametric Technology click here.
Shares of Parametric Technology closed at $23.54 yesterday.
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