UPDATE: BMO Capital Markets Raises PT on NetSuite on Continued Positive Outlook

In a report published Friday, BMO Capital Markets analyst Karl Keirstead reiterated a Market Perform rating on

, and raised the price target from $80.00 to $90.00. In the report, BMO Capital Markets noted, “Netsuite is managing well through a tough spending backdrop that hit the application software businesses of bigger rivals Oracle and SAP hard. We were particularly impressed with the strong contribution from the channel (which could be shifting away from on-premises Microsoft Dynamics products) and with the 20% growth in ASP's, which NetSuite attributed to an increase in average seat counts (as deals get larger) and not to price increases. NetSuite's growth is being fueled by success at the lower end of the enterprise segment (tier two), where it feels like NetSuite's larger peers remain vulnerable. While we remain ‘stuck' on NetSuite's rich valuation, our positive call on NetSuite's fundamentals is unchanged.” NetSuite closed on Thursday at $94.47.