UPDATE: CRT Downgrades Verint Systems

CRT Capital downgraded Verint Systems Inc. VRNT Thursday from Buy to Fair Value and maintained a $60 price target.

Analysts Brian Ruttenbur and Corey Allen indicated that “shares are fully valued, in our view, trading at 17.6x FY 2015 pro forma EPS.”

Ruttenbur noted that “Shares are up nearly 40 percent this year primarily due to solid earnings. We project Verint to grow organically in the high single to low double digits going forward. We anticipate acquisitions will add to the Company's growth. However, shares are fully valued, in our view, trading at 17.6x FY 2015 pro forma EPS."

The analyst report concluded, “We continue to like Verint’s outlook and cash flow story. The Company has been generating solid cash flows and growing its business both organically and through acquisitions. We continue to believe that the Company will see solid year/year growth across its entire business."

The price target was based on an 18x FY 2015 EPS estimate of $3.36 and 16x FY 2016 pro forma EPS estimate of $3.70.

Verint Systems shares were volatile Thursday morning, falling sharply and then rebounding. The stock recently traded at $58.30, down 1.5 percent.