Thinkequity Partners Initiates Coverage on Niku
SAN FRANCISCO, Mar 7, 2002 /PRNewswire via COMTEX/ -- ThinkEquity Partners has initiated coverage on Niku Corporation (NIKU). The Research Note, issued by Mark Verbeck, Senior Analyst covering enterprise software with ThinkEquity Partners, rates the stock a BUY with a $4.50 price target. The following are key highlights included in the Research Note:
-- "We are initiating coverage of Niku Corporation with a BUY rating. Based on our 2006 discounted P/E analysis, we are setting a 12-month price target of $4.50 per share, which equates to 4.3x our NTM revenue estimate. -- "Niku stumbled in 2001, struggling with execution missteps surrounding a string of acquisitions, aborted efforts to become a business-to-business play and softening market demand. -- "The company is now on the rebound: it has resized its cost structure and released a rearchitected product set. Last quarter provided solid evidence of this turnaround -- after several declining quarters, licenses were up 71% sequentially. DSOs remain low in the 60 day range and the company is close to profitability. -- "Niku's product footprint is broader, more modern and more strategic than its competitors, which positions it well to capture spending as organizations move from purely tactical project management to more strategic resource and portfolio management processes. -- "The last piece of the puzzle is a demonstration of the long-term opportunity and growth potential. In a difficult spending environment, we are looking for additional live referenceable Niku 6 customers to prove our investment thesis."
Institutional investors can access the complete research note through First Call or by contacting your ThinkEquity Partners institutional salesperson. |
