UPDATE: Bank Of America Reiterates On Concur Technologies On Unattractive Valuation

In a report published Tuesday, Bank of America analyst Kash Rangan reiterated an Underperform rating on

, but lowered the price target from $73.00 to $72.00. In the report, Bank of America noted, “We believe the long-term opportunity is still ahead for CNQR as it attempts to create a truly comprehensive T&E platform. We are raising our FY15 and FY16 revenue but lowering our EPS estimates to reflect the more aggressive reinvestment profile. While valuation has moderated from earlier in the year, it still trades at a premium relative to other SaaS names that we find difficult to justify. Compared to CRM growing at a similar rate, CRM has been able to grow operating profit Y/Y despite a dilutive acquisition, while CNQR's investment profile has been more aggressive, with operating profit declining. Due to increased margin investment, we are lowering our normalized operating margin to 18% (inline with our reduction in margin forecast). Applying a 45x P/E (CRM multiple at similar size and growth rate) on NTM earnings of $1.61 gives us a $72 PO. Reiterate Underperform.” Concur Technologies closed on Monday at $92.66.