Dougherty & Co Downgrades Callidus Software (CALD) to Neutral

Dougherty & Co downgraded Callidus Software (NASDAQ: CALD) from Buy to Neutral and removed its price target (prior $23.00). Analyst Robert Mattson thinks execution risk is increasing.

"Callidus had a decent quarter but once again we are slightly reducing our revenue assumptions and increasing our margins to be consistent with management’s guidance, which leaves our full year earnings estimates unchanged. With recurring revenue growth rate projected to be down 600bps this year and management’s comment of not having enough sales coverage, our underinvestment concerns remain and we have less comfort in the medium term revenue trajectory. So, despite encouraging end market commentary, we see increased execution risk and therefore are lowering our rating from Buy to Neutral," said the analyst.

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

Shares of Callidus Software closed at $19.98 yesterday.

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