Barrington Research Maintains a 'Market Perform' on NetSuite (N); Great Story, But Still a Bit Pricy
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Price: $90.34 --0%
Rating Summary:
7 Buy, 24 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 24 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barrington Research maintains a 'Market Perform' on NetSuite (NYSE: N)
Barrington analyst says, "Yesterday, Oracle announced plans to acquire privately-held Pillar Data Systems Inc., a leading provider of storage systems—the price was not disclosed. Similar to NetSuite, Oracle CEO Larry Ellison owns about 55% of Pillar; he also loaned the company about $544 million."
"NetSuite Also a Likely Target. Given Mr. Ellison’s 55% ownership of NetSuite, the company is clearly on Oracle’s acquisition radar screen. In addition, as SAP fine-tunes its BusinessByDesign SaaS ERP solution and gains market acceptance, we believe that Oracle will be forced to react. Furthermore, NetSuite’s entire infrastructure runs on Oracle."
"Although NetSuite is one of our favorite SaaS companies and believe that a valuation premium is warranted, the current level seems a bit excessive and we recommend buying on share pull backs."
For more ratings news on NetSuite click here and for the rating history of NetSuite click here.
Shares of NetSuite closed at $38.93 yesterday.
Barrington analyst says, "Yesterday, Oracle announced plans to acquire privately-held Pillar Data Systems Inc., a leading provider of storage systems—the price was not disclosed. Similar to NetSuite, Oracle CEO Larry Ellison owns about 55% of Pillar; he also loaned the company about $544 million."
"NetSuite Also a Likely Target. Given Mr. Ellison’s 55% ownership of NetSuite, the company is clearly on Oracle’s acquisition radar screen. In addition, as SAP fine-tunes its BusinessByDesign SaaS ERP solution and gains market acceptance, we believe that Oracle will be forced to react. Furthermore, NetSuite’s entire infrastructure runs on Oracle."
"Although NetSuite is one of our favorite SaaS companies and believe that a valuation premium is warranted, the current level seems a bit excessive and we recommend buying on share pull backs."
For more ratings news on NetSuite click here and for the rating history of NetSuite click here.
Shares of NetSuite closed at $38.93 yesterday.
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