Needham & Company Reiterates a 'Buy' on Bottomline Technologies (EPAY); Key Businesses Gaining Traction And Could Drive Upside Results Over FY12

Needham & Company reiterates a 'Buy' on Bottomline Technologies (NASDAQ: EPAY) price target raised from $25 to $29.

Needham analyst says, "EPAY delivered a solid 1Q with in line revenue and higher EPS on better margins. Management maintained revenue guidance for the year but raised EPS guidance to reflect the upside in 1Q. EPAY is off to a solid start for the year and with its 3 key segments, namely global banks, legal spend, and Paymode, showing good traction, positioning it to deliver sustained upside results over FY12. EPAY is seeing healthy activity in the global bank market and has not seen deployments slow in spite of the global economic conditions. We believe the launch of its WebSeries 7 platform for the global bank market could see the customer upgrade cycle accelerate over FY12. On the legal spend side, EPAY secured 6 new customer wins and expanded its relationships with existing customers in 1Q. As the market leader, following the acquisition of its primary competitor, Allegient, EPAY is winning a disproportionate share of the opportunities. Last but not least, Paymode is gaining traction and it appears the two global bank pilots announced previously are showing signs of early success. We believe accelerated growth across its 3 segments coupled with faster operating leverage could lead to EPS upgrades over FY12." (Needham raises FY12 EPS estimate by $0.04 to $1.07 and FY13 by $0.03 to $1.27)

For more ratings news on Bottomline Technologies click here and for the rating history of Bottomline Technologies click here.

Shares of Bottomline Technologies closed at $24.50 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Coherent (COHR) PT Raised to $420 at Needham
• Needham Reiterates Buy Rating on Harmonic Inc. (HLIT)
• Needham Reiterates Hold Rating on CoreWeave (CRWV)