Needham & Company Maintains a 'Buy' on CA (CA); Raising PT following Solid DecQ and Aggressive Buyback
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Price: $24.99 --0%
Rating Summary:
0 Buy, 17 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 17 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on CA (NASDAQ: CA) price target raised from $25 to $32.
Needham analyst says, "...We believe the field activity for CA improved in the quarter, and Europe showed some signs of recovery after several quarters of disappointing results. Segment results of mainframe +9% y/y and Enterprise Solutions +12% y/y were solid; mainframe benefited from a 6% contribution from the large license deal..."
"With the buyback and dividend increase, we also had the slightly disappointing cash flow from operations performance of $396m; CA reiterated its FY12 cash flow goal, saying “timing” was a challenge and cash flows should accelerate in the F4Q(Mar). We view CA shares as more attractive, as the combination of buyback and a commitment to 1% operating margin expansion in near-medium term should entice value investors. Shares indicated in aftermarket up 15% to roughly $26.20, which is 10x our new $2.40 FY13 EPS estimate and 2.3x EV/revenue."
For an analyst ratings summary and ratings history on CA click here. For more ratings news on CA click here.
Shares of CA closed at $22.82 yesterday.
Needham analyst says, "...We believe the field activity for CA improved in the quarter, and Europe showed some signs of recovery after several quarters of disappointing results. Segment results of mainframe +9% y/y and Enterprise Solutions +12% y/y were solid; mainframe benefited from a 6% contribution from the large license deal..."
"With the buyback and dividend increase, we also had the slightly disappointing cash flow from operations performance of $396m; CA reiterated its FY12 cash flow goal, saying “timing” was a challenge and cash flows should accelerate in the F4Q(Mar). We view CA shares as more attractive, as the combination of buyback and a commitment to 1% operating margin expansion in near-medium term should entice value investors. Shares indicated in aftermarket up 15% to roughly $26.20, which is 10x our new $2.40 FY13 EPS estimate and 2.3x EV/revenue."
For an analyst ratings summary and ratings history on CA click here. For more ratings news on CA click here.
Shares of CA closed at $22.82 yesterday.
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