Needham & Company Reiterates a 'Buy' on Progress Software (PRGS); Valuation and New CEO Announcement
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Price: $51.63 +0.39%
Rating Summary:
8 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
8 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Needham & Company reiterates a 'Buy' on Progress Software (NASDAQ: PRGS) price target of $25.00.
Needham analyst says, "Progress announced it has named Jay Bhatt as CEO of Progress, effective Dec 5th. Bhatt will be replacing CEO Rick Reidy, who announced his planned departure and transition on August 1st; Reidy will be leaving PRGS and stepping down from the Board. Bhatt comes from Autodesk (Nasdaq: ADSK)(N/R), a provider of design software; at ADSK, Bhatt was the head of Architecture, Engineering, and Construction (AEC) division, which has been running at a $550m annual run rate, and is the second-largest business unit at ADSK (approx 30% total revs). The appointment of Bhatt is likely to appease investors who were looking for a senior executive capable of running a business similar in scale to PRGS (FY11 est. revenue $529m). Bhatt also has the balance of operating experience (run AEC since 2004) plus corporate development in his background, which may be useful as PRGS evaluates its portfolio of solutions. The ongoing question for us, though, is the strategy of “big deal” solution selling at PRGS, which has not worked well over the last 12 months. As Bhatt is a successful executive, but not one who has risen up through the sales ranks, we will be eager to see his plan for investors regarding the solution sales strategy at PRGS."
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 $19.23 yesterday.
Needham analyst says, "Progress announced it has named Jay Bhatt as CEO of Progress, effective Dec 5th. Bhatt will be replacing CEO Rick Reidy, who announced his planned departure and transition on August 1st; Reidy will be leaving PRGS and stepping down from the Board. Bhatt comes from Autodesk (Nasdaq: ADSK)(N/R), a provider of design software; at ADSK, Bhatt was the head of Architecture, Engineering, and Construction (AEC) division, which has been running at a $550m annual run rate, and is the second-largest business unit at ADSK (approx 30% total revs). The appointment of Bhatt is likely to appease investors who were looking for a senior executive capable of running a business similar in scale to PRGS (FY11 est. revenue $529m). Bhatt also has the balance of operating experience (run AEC since 2004) plus corporate development in his background, which may be useful as PRGS evaluates its portfolio of solutions. The ongoing question for us, though, is the strategy of “big deal” solution selling at PRGS, which has not worked well over the last 12 months. As Bhatt is a successful executive, but not one who has risen up through the sales ranks, we will be eager to see his plan for investors regarding the solution sales strategy at PRGS."
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 $19.23 yesterday.
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