UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on NetSuite
In a report published Friday, BMO Capital Markets reiterated its Market Perform rating on NetSuite (NYSE: N), and raised its price target from $60.00 to $80.00.
BMO Capital Markets noted, “We conclude that the growth profile is strong enough to offset the disappointing margin guidance. NetSuite is taking advantage of the absence of serious competition in the mid-market cloud ERP market, in contrast with the large enterprise market that is getting much more competitive now that Oracle and SAP have now stepped-up their game. Given this set-up, and in particular the likelihood that Microsoft finally launches Azure-hosted versions of its Dynamics ERP products in 2013, we support NetSuite's aggressive sales and marketing spending plan. We're modestly concerned that NetSuite's growth profile is being boosted by a mix shift to professional services and an invoicing duration change, but we're confident that core subscription billings remain solid.”
NetSuite closed on Thursday at $70.23.
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