Needham & Company Maintains a 'Buy' on Progress Software (PRGS); Looking Into Value of Core Business
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Price: $51.60 +0.80%
Rating Summary:
8 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
Rating Summary:
8 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
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Needham & Company maintains a 'Buy' on Progress Software (NASDAQ: PRGS) price target of $29.00.
Analyst, Scott Zeller, said, "Given the company is in restructuring mode, attempting to sell 10 product groups (32% of total revenue run rate being sold), we are not surprised to see the disruption in both the “for sale” group as well as the “core/surviving” business at PRGS (includes OpenEdge, Apama, and DataDirect). Our view is that investors should value PRGS on the EPS power of the surviving entity; the new “core business” should be roughly 70% of the current total company revenue run rate, and should exit FY13 near 35% opmgn, and grow revenues near 5% for FY13. We are initiating FY13 estimates for the entire company, at $469m and $1.22 EPS, which represents 1% topline revenue growth."
However, Zeller, lowers FY12 EPS estimate from $1.25 to $0.82 and revenues from $526.4 million from $465.4 million.
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 $18.02 yesterday.
Analyst, Scott Zeller, said, "Given the company is in restructuring mode, attempting to sell 10 product groups (32% of total revenue run rate being sold), we are not surprised to see the disruption in both the “for sale” group as well as the “core/surviving” business at PRGS (includes OpenEdge, Apama, and DataDirect). Our view is that investors should value PRGS on the EPS power of the surviving entity; the new “core business” should be roughly 70% of the current total company revenue run rate, and should exit FY13 near 35% opmgn, and grow revenues near 5% for FY13. We are initiating FY13 estimates for the entire company, at $469m and $1.22 EPS, which represents 1% topline revenue growth."
However, Zeller, lowers FY12 EPS estimate from $1.25 to $0.82 and revenues from $526.4 million from $465.4 million.
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 $18.02 yesterday.
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