UPDATE: JMP Securities Downgrades Progress Software Corporation to Market Perform on Appropriate Multiple

In a report published Thursday, JMP Securities analyst Greg McDowell downgraded the rating on

from Market Outperform to Market Perform. In the report, JMP Securities noted, “We believe Progress Software has done an admirable job in the last two years considering all the changes in its leadership team, investor activism, and the divestiture of multiple product lines, and we do believe the company has entered a phase of stabilization with a simplified and more coherent go-to-market strategy. However, we believe this phase of stabilization is largely priced into the stock, and with the stock already up 26% YTD (versus NASDAQ up 36%) and up 46% from its two-year lows, coupled with 1) our increased concern over OpenEdge's long-term prospects (the main revenue and margin driver of the business) and 2) forward year EPS estimates that may be too high, we believe now is a good time to step to the sidelines. We decrease our 2014 estimate from $1.68 to $1.51 (consensus of $1.60), and decrease our 2015 non-GAAP EPS estimate from $2.02 to $1.78 versus consensus of $2.02. Progress Software trades at a 2015 PE ratio of 15x, which we believe is an appropriate multiple.” Progress Software Corporation closed on Wednesday at $25.60.