CHICAGO, Dec 9 (Reuters) - ABN AMRO said Thursday it lowered its rating on BMC
Software Inc. to outperform from buy based on valuation.
-- "At 29.7 times our March 2001 estimate of $2.50, excluding amortizations, and a long-term
growth rate of 25 percent, we think the company is fairly valued," analyst Robert Johnson said
in a research note.
-- "BMCS continues to be one of the best-managed software companies we follow," he said.
"The company was also early in positioning itself as an e-commerce infrastructure provider.
Ultimately, the stock represents a core software holding. Long-term holders may not want to
move their positions."
-- "However, with current valuations there is no room for error," he said. "While the quarter is
in good shape so far, as always, everything comes down to the last few weeks."
-- The stock was down 4-5/8 at 69-5/8. |
