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NEW YORK (Dow Jones)--Shares of Manugistics Group Inc. (MANU) gained 16% Monday after SoundView Technology Group analyst Steven Kohn issued a bullish research note Monday - the latest analyst to express confidence in the firm's fiscal third quarter.
Kohn, who raised his opinion to buy from hold, said the supply chain management concern is "beginning to execute, winning some large contracts and winning some momentum in the marketplace."
He said he's confident the Rockville, Md., firm will meet his fiscal third-quarter estimate of a loss of 7 cents a share on revenue of $36.2 million. Kohn set a $28-a-share 12-month price target.
Wall Street's consensus estimate for the November quarter is a loss of 7 cents a share on revenue of about $35.8 million, the company said.
Last Wednesday, Banc of America Securities analyst Bob Austrian raised his rating to buy from market perform and the stock climbed 14% that session.
Nate Wallace, Manugistics' director of investor relations, pointed to the upgrades for the stock's move and declined to comment further, citing its earnings "quiet period."
After a series of erratic, often disappointing quarterly results last year, the firm brought on new management in April to orchestrate a turnaround. Following the changes, Manugistics beat estimates in its May quarter, only to fall short in its August quarter.
Despite the inconsistency, investors have been warming to the stock recently - it has nearly doubled since the start of November. On Monday, Manugistics changed hands at 21 1/8, up 2 7/16, or 13% on Nasdaq volume of 2.2 million shares. Average daily turnover is 404,000 shares.
-Marcelo Prince, Dow Jones Newswires; 201-938-5244 |
