Lawson Software (LWSN) shares are trading lower this morning after Piper Jaffray analyst Mark Murphy lowered his rating on the stock to Neutral from Overweight on a valuation basis. He notes that the comapny has executed well, expanding operating margin from 6% in 2007 to 15% lately, propelling a 164% rally in the stock since November 2008.
Murphy says May quarter guidance still “embeds a healthy dose of conservatism,” and adds that “cyclical recovery has begun to benefit the business.” But he adds that he expects the stock from here to perform in line with its peers. Trading at 14x FY 2011 estimated free cash flow – a premium to ORCL at 12.7x – “the shares have become more fairly priced.”
LWSN is off 26 cents, or 3.5%, to $7.19.
Related Articles:BP Whiffs on Earnings
Weakness drags on tech stocks at week�s end
Tags: BP ,NYSE ,Q4 ,Top Performing Dividend Stocks ,Top Performing Stocks To Invest In 2012 ,Top Performing Stocks To Watch In 2012 ,Best China Stocks 2012
No comments:
Post a Comment