UPDATE: Wedbush Securities Initiates Neutral, $20 PT on Progress Software; Transition Difficult
Wedbush Securities initiated its coverage on Progress Software (NASDAQ: PRGS) with a Neutral rating and a price target of $20 a share.
Wedbush Securities said, "Although management has a sensible plan for refocusing and stabilizing the company, we see a high potential for further disappointments. Risk factors include: execution problems stemming from employee turnover; customer uncertainty about the roadmap for PRGS's products; and the difficulty inherent in trying to modernize a 30-year old application platform. … However, we do see some potential upside too. PRGS may need to announce a tender offer soon in order to complete its planned $150M in 2H share repurchases, and such an offer would likely be at a premium. "
Progress Software closed at $19.55 on Tuesday.
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