Wedbush Securities Sees Near-Term Pressure From Currency And Investments for Progress Software

In a report published Monday, Wedbush Securities analyst Steve Koenig reiterated a Neutral rating and $24.00 price target on

. In the report, Wedbush Securities noted, "We are reiterating our NEUTRAL rating and 12-month target price of $24, based on a combination of our P/E, EV/FCF, and DCF approaches. PRGS's trading multiples (13x EV/FCF on FY15) are relatively low, but fair in light of the company's modest growth profile. Investors may be interested in PRGS as a potential takeout candidate, and perhaps the reorganization into three distinct business segments can facilitate future actions. However, we believe strategic interest in PRGS has been slim in the past, and we question the upside potential of a private transaction, despite surprisingly high multiples in the TIBCO take-out." Progress Software closed on Friday at $27.05.