Needham & Company Reiterates a 'Buy' on MICROS Systems (MCRS); Raising Numbers on Solid Performance
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Price: $67.99 --0%
Rating Summary:
0 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
0 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Needham & Company reiterates a 'Buy' on MICROS Systems (NASDAQ: MCRS) price target raised from $63 to $70.
Analyst, Mayank Tandon, said, "Micros delivered in line revenue but beat EPS by a nickel on account of a lower tax rate. Management maintained FY12 revenue guidance of 10% Y/Y growth but raised EPS guidance to $2.16 from $2.09 to reflect the upside in 3Q. Despite the in line performance in 3Q, we believe the key positive catalysts that could drive sustained EPS upside performances over the next 12-18 months remain in place. Specifically, the 2-3% maintenance price effected in January; a pick up in the customer upgrade cycle as Simphony, Micro's flagship restaurant product, gains traction; new logo wins, particularly among the global hotel chains; and share gains as its primary restaurant competitor, Radiant Systems, is integrated into NCR (NYSE: NCR) (N/R). While the stock has had a strong run, up 19% YTD, we believe the risk-reward remains attractive at 19x ex-cash on our FY13 EPS estimate for a dominant franchise and a 20% EPS grower (by our estimates) long term." (FY12 EPS estimate raised from $2.11 to $2.16 and FY13 from $2.35 to $2.42)
For an analyst ratings summary and ratings history on MICROS Systems click here. For more ratings news on MICROS Systems click here.
Shares of MICROS Systems closed at $55.28 yesterday.
Analyst, Mayank Tandon, said, "Micros delivered in line revenue but beat EPS by a nickel on account of a lower tax rate. Management maintained FY12 revenue guidance of 10% Y/Y growth but raised EPS guidance to $2.16 from $2.09 to reflect the upside in 3Q. Despite the in line performance in 3Q, we believe the key positive catalysts that could drive sustained EPS upside performances over the next 12-18 months remain in place. Specifically, the 2-3% maintenance price effected in January; a pick up in the customer upgrade cycle as Simphony, Micro's flagship restaurant product, gains traction; new logo wins, particularly among the global hotel chains; and share gains as its primary restaurant competitor, Radiant Systems, is integrated into NCR (NYSE: NCR) (N/R). While the stock has had a strong run, up 19% YTD, we believe the risk-reward remains attractive at 19x ex-cash on our FY13 EPS estimate for a dominant franchise and a 20% EPS grower (by our estimates) long term." (FY12 EPS estimate raised from $2.11 to $2.16 and FY13 from $2.35 to $2.42)
For an analyst ratings summary and ratings history on MICROS Systems click here. For more ratings news on MICROS Systems click here.
Shares of MICROS Systems closed at $55.28 yesterday.
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