Needham & Company Reiterates a 'Buy' on MICROS Systems (MCRS); Earnings Preview: End Markets Remain Firm; Poised To Deliver Another Solid Performance

Needham & Company reiterates a 'Buy' on MICROS Systems (NASDAQ: MCRS) price target of $63.00.

Needham analyst said, "Micros will report 2Q FY12 results post close on Thursday, January 26th. We are looking for Micros to deliver another solid quarter with modest upside on revenue, margins, and earnings. While the macro picture remains muddy, especially in Europe, we believe Micros’ business is tracking on plan and there is potential for revenue upside over CY12, specifically from a product cycle driven acceleration in customer upgrade activity; market share gains, and two potential large hotel deal signings. We also believe the recent maintenance price hike, mix shift to software and services from hardware, and operating leverage should drive stronger margin expansion and coupled with share repurchases lead to sustained EPS outperformance through CY12. While the stock has had a strong run going into earnings, we believe the risk/reward remains attractive at 18x ex-cash CY12 EPS for a dominant franchise and 20% EPS grower LT."

For an analyst ratings summary and ratings history on MICROS Systems click here. For more ratings news on MICROS Systems click here.

Shares of MICROS Systems closed at $51.15 yesterday.

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