In a note released early Friday morning, Credit Suisse analyst Michael Nemeroff downgraded shares of Jive Software JIVE from Outperform to Neutral and lowered the price target from $13 to $8.
Nemeroff's downgrade comes on the back of Jive's downward revision to its 2014 year-over-year billings growth guidance from +20 percent to the high mid-teens. This has caused Nemeroff's 2015 revenue growth rate estimate to go "well below" +20 percent.
Nemeroff said the departure of both the head of worldwide sales and product development is equally important, as it may cause near-term business disruptions.
Despite a "substantial and growing" ESS market, Nemeroff is waiting for sustained billings improvement before he moves from the sidelines.
Amid the downgrade, shares of Jive have dropped four percent in Friday's pre-market.
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