Canaccord Genuity on Technology/Enterprise Software: Game On, For Now At Least
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Price: $331.36 --0%
Rating Summary:
15 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
15 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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Canaccord Genuity on Technology -- Enterprise Software by Richard Davis
Davis said, "We declare victory on Ultimate Software (Nasdaq: ULTI) and SPS Commerce (Nasdaq: SPSC) and downgrade to HOLD for now. SuccessFactors (Nasdaq: SFSF) goes to TENDER on SAP announcement. We rank and discuss the rest of our universe. Downgrading ULTI & SPSC following both stocks’ impressive runs and now-high valuations (our price targets are unchanged at $60 and $24, respectively). In addition, we have changed our rating on SuccessFactors to TENDER on the announcement that that the firm will be acquired by SAP (NYSE: SAP) for $40 per share. In this report we have included brief discussions of each of the 17 other companies on which we regularly publish. We are quite confident that Q4 results for the vast majority of software companies will meet or exceed consensus forecasts. Barring a possible but still somewhat unlikely severe worldwide recession caused by Europe’s inability to address its fiscal crisis, 2012 should bring another good year for software companies, especially those with cloud architectures. As such, we would own software at least at an equal weight to its index representation."
"The rest of our coverage: two favorite picks - Salesforce.com (NYSE: CRM) for growth and Nuance Communications (Nasdaq: NUAN) for GARP. We narrowed out top picks to these two stocks from four. Close contenders for our top picks include Aspen (Nasdaq: AZPN) and Bottomline (Nasdaq: EPAY).
Davis said, "We declare victory on Ultimate Software (Nasdaq: ULTI) and SPS Commerce (Nasdaq: SPSC) and downgrade to HOLD for now. SuccessFactors (Nasdaq: SFSF) goes to TENDER on SAP announcement. We rank and discuss the rest of our universe. Downgrading ULTI & SPSC following both stocks’ impressive runs and now-high valuations (our price targets are unchanged at $60 and $24, respectively). In addition, we have changed our rating on SuccessFactors to TENDER on the announcement that that the firm will be acquired by SAP (NYSE: SAP) for $40 per share. In this report we have included brief discussions of each of the 17 other companies on which we regularly publish. We are quite confident that Q4 results for the vast majority of software companies will meet or exceed consensus forecasts. Barring a possible but still somewhat unlikely severe worldwide recession caused by Europe’s inability to address its fiscal crisis, 2012 should bring another good year for software companies, especially those with cloud architectures. As such, we would own software at least at an equal weight to its index representation."
"The rest of our coverage: two favorite picks - Salesforce.com (NYSE: CRM) for growth and Nuance Communications (Nasdaq: NUAN) for GARP. We narrowed out top picks to these two stocks from four. Close contenders for our top picks include Aspen (Nasdaq: AZPN) and Bottomline (Nasdaq: EPAY).
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