UPDATE: D.A. Davidson Reiterates Neutral Rating, Lowers PT for Bottomline Technologies
In a morning research summary published earlier today, D.A. Davidson & Co. reiterated its Neutral rating for Bottomline Technologies (NASDAQ: EPAY), but lowered its price target from $22.00 to $20.00.
D.A. Davidson went on to say “Customer spending and sector evolution leads to outperformance. Even after significant pressure during the month of May, our comprehensive financial technology index remains well ahead of the broader market. As shown in Chart 1, over the last 12 months the domestic Financial Technology group is up nearly 17%, versus the S&P 500 up only 5%. Clearly, financial institutions are loosening purse strings after an extended and understandable discretionary spending hiatus. Further, we believe the market is showing more appreciation for the sector's steady evolution from lumpy license-based contracts to outsourced subscription-based contracts with recurring revenue.”
Bottomline Technologies closed on Friday at $17.58.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.