Jefferies Lowers BEA Systems To Hold From Accumulate (BEAS)
(NewsTraders.com)--Seeing risk to shares of BEA Systems ( BEAS ) on several fronts, including its "high valuation," Jefferies & Co. analyst Richard Williams today downgraded the stock to "hold" from "accumulate," although he kept his price target unchanged at $72.
Williams forecasts several catalysts in the near term that he feels could adversely effect the company, such as Hewlett-Packard's ( HWP ) acquisition of Bluestone, which he believes will provide a disincentive for HP to resell BEA Systems' products.
Related to that subject, the analyst fears that HP may not continue the three-year, $100 million terms of its reselling agreement with BEA Systems.
In addition, Williams perceives BEA Systems' strategy for the next phase of e-commerce infrastructure buying as "weak."
As for valuation, Williams commented that "even a small slowing in sales growth could take the stock down, being priced for perfection now."
Shares of BEA Systems fell $0.19 to $74.31 on the news -- after having traded up as high as $80.00 in earlier trading. |
