UPDATE: Credit Suisse Downgrades RealPage to Neutral, Lowers PT on Growth Deceleration Concerns

In a report published Friday, Credit Suisse analyst Michael Nemeroff downgraded the rating on RealPage RP from Outperform to Neutral, and lowered the price target from $23.00 to $20.00. In the report, Nemeroff noted, “Despite reporting an in-line 1Q13, we downgrade shares of RP to Neutral from Outperform based on our concerns that the company's organic On-Demand revenue growth could fall below +20% yr/yr within the next year, and our belief that the shares are fairly valued at the current On-Demand revenue growth rate. While RP continues to grow new units at or above +10% (organic), we have concerns that sales of some of its newer products (new modules within LeaseStar) could weigh on the company's On-Demand revenue growth rate and limit significant ARPU expansion over the next several quarters. We forecast organic On-Demand revenue to grow only +20.2% in 2013, the third straight year of decelerating growth (+21.2% in 2012 / +23.9% in 2011), with a potential growth rate below +20% by 4Q13.” RealPage closed on Thursday at $19.75.