Wells Fargo Starts NetSuite (N) at Outperform; Premium Valuation is Warranted, In Our View
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Price: $90.34 --0%
Rating Summary:
7 Buy, 24 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
7 Buy, 24 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Wells Fargo initiates coverage on NetSuite (NYSE: N) with an Outperform. PT range is $47-$50.
Wells analyst says, "Our valuation range is based on an EV/Sales multiple of 8-9x our FY2013E revenue figure of $355 million. Our NetSuite thesis is that in the next few years the company is going to be worth substantially more than it is today as it takes share in the multi-billion dollar small to medium sized business application software market. NetSuite has a myriad of competitive technical and business model advantages that should enable the company to grow revenue at a 20%+ clip over the next five years. We believe that customers will increasingly implement cloud based business applications and NetSuite’s position as the leading suite provider in the SMB market should enable the company to win against established players and drive legacy system replacements."
For an analyst ratings summary and ratings history on NetSuite click here. For more ratings news on NetSuite click here.
Shares of NetSuite closed at $41.73 yesterday.
Wells analyst says, "Our valuation range is based on an EV/Sales multiple of 8-9x our FY2013E revenue figure of $355 million. Our NetSuite thesis is that in the next few years the company is going to be worth substantially more than it is today as it takes share in the multi-billion dollar small to medium sized business application software market. NetSuite has a myriad of competitive technical and business model advantages that should enable the company to grow revenue at a 20%+ clip over the next five years. We believe that customers will increasingly implement cloud based business applications and NetSuite’s position as the leading suite provider in the SMB market should enable the company to win against established players and drive legacy system replacements."
For an analyst ratings summary and ratings history on NetSuite click here. For more ratings news on NetSuite click here.
Shares of NetSuite closed at $41.73 yesterday.
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