Needham & Company Reiterates a 'Buy' on Bottomline Technologies (EPAY); Takeaways From The Road – Trends Solid, Business Scaling, Valuation Attractive

Needham & Company reiterates a 'Buy' on Bottomline Technologies (NASDAQ: EPAY) price target of $29.00.

Needham analyst says, "Following our recent trips with management, we are confident EPAY's business is running on plan and there are multiple legs to the growth story that could drive upside results over both the near and medium term. We believe the three legs to the EPAY growth story, namely global cash management, legal exchange, and Paymode-X, are growing 20%+ or 2x the corporate average and have the potential to become sizable businesses over time. As the model scales margins should continue to expand 200-300 bps per year and lead to 20% EPS growth long term. With valuation at 15x ex-cash our CY12 EPS estimate, we believe the risk-reward is attractive and reiterate our rating."

For an analyst ratings summary and ratings history on Bottomline Technologies click here. For more ratings news on Bottomline Technologies click here.

Shares of Bottomline Technologies closed at $22.65 yesterday.

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