UPDATE: Goldman Sachs Maintains Neutral, Reduces PT to $22 on Parametric Technology on FX, Macro
Goldman Sachs reiterates its Neutral rating on Parametric Technology (NASDAQ: PMTC) and reduces its price target from $24 to $22.
Goldman Sachs says, "[W]e have lowered our FY12 estimates to account for an incremental currency headwind versus guidance as well as a deteriorating macro environment. Our June quarter revenue and EPS estimates now stand at $306mn, $0.29 (prior: $309mn, $0.30; guidance: $300-$315mn, $0.28-$0.32), and FY12 is now at $1.26 bn, $1.43 (prior: $1.28bn, $1.46; guidance: $1.265-1.285bn, $1.42-1.50). We think management's June quarter and FY2012 guidance embedded a degree of conservatism, which our analysis suggests could be about $16mn for FY2012 license revenue. With that said, however, we view our updated license estimates as reflecting seasonal trends more consistent with the macro environment. We lower FY13-FY14 estimates on flow-through."
PMTC closed at $18.95 on Monday.
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Tags: Goldman Sachs