Nomura Reiterates Buy on Concur Technologies (CNQR) in Wake of Favorable GAO Ruling

In June, Concur Technologies (Nasdaq: CNQR) won a $1.4bn, 15-year travel and expense contract from the GSA. CWT, the other party bidding for the contract, lost the deal and protested this decision, requesting that the deal be dual sourced by CWT and Concur. According to reports, the Government Accountability Office (GAO) ruled in favor of Concur and upheld the contract as single sourced.

"We believe this announcement should have a smaller than 2% impact to Concur’s share price but believe it is an incremental positive to have this catalyst behind us," said analyst Frederick Grieb of Nomura.

"We believe any move greater than 2% on this news is unwarranted," he added. "That said, we believe this should be seen as an incremental positive, as it is now certain that Concur will keep 100% of the ETS2 contract. We would be buyers of the shares on the back of this news as we continue to believe (1) Concur is the dominant leader in the large, underpenetrated, travel & expense software market; (2) we expect upside to consensus estimates, driven by improved sales and marketing productivity; and (3) trading near SaaS group averages, the stock makes an attractive acquisition target in the consolidating SaaS space."

Nomura has a Buy rating on Concur Technologies and an $80 price target.

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

Shares of Concur Technologies closed at $74.67 yesterday.

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