Jefferies Cuts Price Target on Conqur (CNQR) Due to Mixed Guidance and Expense Expectations
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Price: $128.78 --0%
Rating Summary:
2 Buy, 18 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
2 Buy, 18 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Jefferies is reiterating its Buy rating on shares of Conqur (NASDAQ: CNQR), but is reducing its price target from $57 to $53.
The company reported inline Q4 results, but released guidance that implied it was going to cost them a lot for some growth.
Sales for FY12 is forecasted to grow by 25 percent by CNQR, topping the Street's previous estimate by 3 percent. The company is predicting Non-GAAP operating margin of 18 percent for the year, which is 4 percent below what the Street was anticipating and 5 percent below what the firm was. CFO and FCF were both guided well below what Jefferies was previously estimating.
An analyst at Jefferies comments, "It feels like CNQR has to spend more to grow and so the stock will be down. But this is a big reset and if growth continues to accelerate, cash flow will ultimately follow."
Jefferies is cutting its FY12 and FY13 EPS estimates from $1.06 and $1.51 to $0.81 and $1.06. The firm's total sales estimates for FY12 and FY13 were increased to $437 million and $553 million.
For an analyst ratings summary and ratings history on Conqur click here. For more ratings news on Conqur click here.
Shares of Conqur closed at $48.03 yesterday.
The company reported inline Q4 results, but released guidance that implied it was going to cost them a lot for some growth.
Sales for FY12 is forecasted to grow by 25 percent by CNQR, topping the Street's previous estimate by 3 percent. The company is predicting Non-GAAP operating margin of 18 percent for the year, which is 4 percent below what the Street was anticipating and 5 percent below what the firm was. CFO and FCF were both guided well below what Jefferies was previously estimating.
An analyst at Jefferies comments, "It feels like CNQR has to spend more to grow and so the stock will be down. But this is a big reset and if growth continues to accelerate, cash flow will ultimately follow."
Jefferies is cutting its FY12 and FY13 EPS estimates from $1.06 and $1.51 to $0.81 and $1.06. The firm's total sales estimates for FY12 and FY13 were increased to $437 million and $553 million.
For an analyst ratings summary and ratings history on Conqur click here. For more ratings news on Conqur click here.
Shares of Conqur closed at $48.03 yesterday.
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