Jefferies Reiterates Buy, $39 Target on BMC Software

Jefferies maintains its Buy rating and $39 target price on BMC Software (NASDAQ: BMC) as the company moves forward with the capital raise.

Jefferies says, "This morning, BMC filed a preliminary prospectus for a potential debt offering; the company is expected to raise $500mn, according to Bloomberg. Following the $300mn acquisition of Numara, the debt offering will backfill domestic cash balances, provide enhanced liquidity for continued share repurchase activity, and is a step towards further capital structure optimization."

BMC closed at $38.11 a share on Tuesday.