UPDATE: Canaccord Genuity Downgrades SciQuest Following Lowered Guidance
In a report published Friday, Canaccord Genuity analyst Richard Davis downgraded SciQuest (NASDAQ: SQI) from Buy to Hold, and lowered the price target from $27.00 to $22.00.
In the report, Canaccord Genuity noted, “A slight miss on June quarter FCF cascaded down to a significant guide down on 2H/13E FCF and revenue growth due to poor sales execution and the possible cancellation of two state contracts. We realize that post-whiff downgrades are lame, but a HOLD is probably the right call in this case because execution issues almost always slop into subsequent quarters and the dust up with states, logically or not, implies higher risk and lower EV/FCF multiples until proven otherwise. We are not predicting Armageddon, but instead it wouldn't surprise us if SQI shares, after a likely dip this morning, end up in the $20-25 range 6-9 months from now. That indicates to us a HOLD rating, not a Buy.”
SciQuest closed on Thursday at $24.69.
Latest Ratings for SQI
|Jun 2016||Raymond James||Downgrades||Outperform||Market Perform|
|May 2016||William Blair||Downgrades||Outperform||Market Perform|
|Jul 2015||Canaccord Genuity||Downgrades||Buy||Hold|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.