CA Technologies (CA): Anti Trust Should Not Prevent CA/BMC Merger - Bernstein

June 28, 2017 8:36 AM EDT
Get Alerts CA Hot Sheet
Price: $44.49 +2,629.45%

Rating Summary:
    0 Buy, 17 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 18 | Down: 8 | New: 31
Trade Now! 
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

Bernstein analyst, Mark Moerdler, reiterated his Underperform rating on shares of CA (NASDAQ: CA) despite rumors about a possible acquisition by BMC Software. While the two companies were once dominant in the systems management industry, the analyst notes that CA and BMC have 7.5% and 8% share respectively as of FY16 which combined would put them on a near even footing with IBM, the largest vendor, at 15%. There are also many other vendors in the market including MSFT (7%) and NOW (5%) so anti trust concerns should not be an issue.

On the flip side however, he believes that BMC acquiring CA could be incrementally positive for Splunk (NASDAQ: SPLK) and ServiceNow (NYSE: NOW) as each could take share during any disruption. No change to the below market price target of $28.

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

Shares of CA closed at $34.62 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Rumors

Related Entities

Sanford C. Bernstein, Definitive Agreement