Piper Jaffray Overweight on RightNow Technologies

Piper Jaffray is out with a research report on RightNow Technologies RNOW and it has an Overweight rating and a $40 price target on shares. In a note to clients, Piper Jaffray writes, "Our checks in the RightNow ecosystem indicate strong business momentum across multiple verticals. All of the industry contacts we interviewed reported ongoing positive trends. Contacts highlighted strong demand momentum driven by an aggressive sales organization as well as increasing interest from large resellers. Contacts alluded to a couple of large deals closed in the quarter and also referred to "impressive up sell" activity across the customer base. Contacts further highlighted that “Q4 is shaping up pretty good” and also mentioned that RightNow's professional services is “stretched and they have a huge backlog.” Call Center/Contact Center replacement spending is strong, driving demand for Cloud-based multi-channel Service products. We are incrementally confident in 20-30% growth being achievable in 2011. Reiterate Overweight, $40 target." Shares of RNOW closed at $36.74 yesterday.