Needham & Company Reiterates a 'Buy' on Progress Software (PRGS) Following Restructuring Announcement

Needham & Company reiterates a 'Buy' on Progress Software (NASDAQ: PRGS) price target of $29.00.

Analyst, Scott Zeller, said, "Overall, we believe the restructuring actions are the best option given the business new CEO Jay Bhatt inherited when arriving as CEO at the end of CY11. While there are few specifics on actual milestones/timing for the financial model (e.g. timing of divestitures, opmgn improvement), it is possible our FY12 EPS could decrease, and our FY13 EPS estimate could be fairly high vs FY12E. Due to disruption we anticipate over the next 3-6 months, we anticipate muted revenue performance for the new “core” PRGS, but we do believe operating margins, and EPS, may improve."

(FY12 EPS estimate raised from $1.22 to $1.25 and FY revs from $522.0 mln to $526.4 mln)

For an analyst ratings summary and ratings history on Progress Software click here. For more ratings news on Progress Software click here.

Shares of Progress Software closed at $23.47 yesterday.

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