Needham & Company Reiterates a 'Buy' on Bottomline Technologies (EPAY); Acquisition Financially Dilutive But Strategically Sound

Needham & Company reiterates a 'Buy' on Bottomline Technologies (NASDAQ: EPAY) price target of $33.00.

Analyst, Mayank Tandon, said, "We are reiterating our rating following our trip with management. We believe the key growth engines (Global Banks, Legal Exchange and Paymode-X) can grow into meaningfully larger businesses while generating high incremental margins. While the acquisition of the cash management business from Intuit (Nasdaq: INTU) announced earlier this week should be earnings dilutive, we believe it is a strategically sound deal consistent with EPAY's philosophy of buying attractive assets at reasonable valuations and turning them into profitable recurring revenue steams over time. We continue to recommend investors buy EPAY, especially on pullbacks, based on the large market opportunity in all of its key growth areas and the multi-year margin expansion opportunity...we are reducing our FY12 EPS estimate to $0.99 from $1.07 and our FY13 EPS forecast to $1.18 from $1.27."

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 $28.28 yesterday.

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