Deutsche Bank Increases Its PT On NetSuite To $24

NetSuite N reported revenue of $52.1m that was ahead of Deutsche Bank's/Street estimates of $51m. EPS of $0.04 was in line with DB's/Street expectations. EITF 0801 impact to services revenue, as expected, was $1.1m. Billings growth accelerated to 25% y/y. DB is reducing its EPS estimates, but increasing revenue due to greater growth expectations. Deutsche Bank Increases its PT to $24 from $19, but is keeping a Hold rating due to balanced risk/reward at current valuation levels. Deutsche Bank is reiterating its Hold rating but raising PT to $24 on higher forward growth rate assumptions. Price target is based on a 2012 uFCF/share estimate of $0.42, an EV/FCF/G of 1.3x and a long-term annual uFCF growth rate of 40%. Key downside risks include churn in the SMB space, an expanding partner ecosystem. Upside risks include a possible inflection in SaaS ERP, and a higher success rate of increasing ASPs. N is trading lower at $27.50