Deutsche Bank Initiates Coverage On ServiceSource (SREV)

Deutsche Bank is initiating coverage on shares of ServiceSource SREV with a $20 price target and a Buy rating. In a note to clients, Deutsche Bank writes, "ServiceSource is the clear market leader in a rapidly growing but nascent market for maintenance and support renewals, estimated at over $150bn annually and less than 5% penetrated. Over the past decade, SREV has gained significant scale and geographic scope, supported by a unique business model that combines technology with specialized services. We believe this provides a compelling platform for sales and margin growth, while also maintaining strong barriers to entry. We initiate coverage with a Buy rating and $20 PT." Shares of SREV closed at $12.90 yesterday.