UPDATE: Piper Jaffray Downgrades Concur Technologies to Underweight on Valuation, End Market Weakness

Piper Jaffray downgraded Concur Technologies

from Neutral to Underweight and lowered its price target from $60 to $49. Piper Jaffray noted, "We are downgrading CNQR shares to UW from Neutral for several reasons: 1) the current valuation at 76x untaxed FY13 FCF, or roughly 91x on a taxed basis, represents rare air and could typify the genre of stocks susceptible to de-risking as a broad and sudden wave of Tech earnings disappointments emerges; 2) as we noted in mid-October, airline RPMs and AMEX corporate travel data have arced over into negative territory and should create a headwind for CNQR; 3) investors might be overlooking the fact that CNQR has guided revenue below consensus for two consecutive quarters while billings growth decelerated; 4) intensifying competition from new entrants such as Workday; and 5) any hopes pinned to the large Government contact will require great patience until 2016 to produce meaningful revenue." Concur Technologies closed at $64.96 on Wednesday.