UPDATE: Oppenheimer Downgrades Concur Technologies to Underperform on Short-Term Pressure Concerns
In a report published Tuesday, Oppenheimer analyst Brian Schwartz downgraded the rating on Concur Technologies (NASDAQ: CNQR) from Perform to Underperform.
In the report, Schwartz noted, “We downgrade Concur to Underperform on concerns the shares may experience pressure short term as investors realize the organic growth expectations in coming quarters are ahead of what is achievable for the following five reasons: 1) hiring trends in 2Q are significantly weaker than in prior years; 2) recent partner conversations indicate mid-market demand trends temporarily softened and will be a drag on cross-selling productivity; 3) our intra-quarter enterprise-spending survey showed 2013 T&E growth as the laggard category; 4) sequestration effects, along with recent commentary from Red Hat, indicate meaningful government contributions are unlikely to positively inflect soon; and 5) any slower bookings trends could pressure future margins as the company may need to rev up its acquisition engine to compensate (i.e., conTgo).”
Concur Technologies closed on Monday at $64.95.
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