UPDATE: Benchmark Reiterates Buy Rating, Lowers PT on Guidance Software on Mixed 4Q12 Results
In a report published Friday, Benchmark reiterated its Buy rating on Guidance Software (NASDAQ: GUID), but lowered its price target to $13.00.
Benchmark noted, “We expect GUID to come under pressure today after the Company reported mixed 4Q12 results (EPS was in line but revenue missed) and after management lowered its 2013 outlook well below expectations. Estimates are certain to come down and we think the stock is likely to settle around 1.6x EV/2013E Revenue. While we thought about lowering our rating because it's likely to take 3 to 4 quarters before the new sales investments kick-in, we decided to hold off for now, mainly because we think it's ill-advised to downgrade at the bottom. Instead, we have cut our price target to $13 but maintained our Buy rating.”
Guidance Software closed on Thursday at $11.91.
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