PRGS Has Good Earnings Leverage For 2010
Analysts at Longbow Research initiated coverage of Progress Software (NASDAQ: PRGS) with a “neutral” rating.
Progress Software develops and sells a variety of infrastructure software for developing, deploying and integrating enterprise applications. The analysts mention in their research note that, “PRGS shares carry an attractive P/E multiple but look fairly valued given PRGS’ prospects for overall top-line growth. We see good earnings leverage for PRGS in FY10 based on 1Q restructuring and a resumption of modest revenue growth. Our rating for PRGS shares reflects our view that the shares are fairly valued and lack visible near-term catalysts.”
“PRGS’ 1Q (December) restructuring is viewed as good news for the company's earnings outlook, while revenue guidance provides some comfort that management is not likely preparing for another year of declining revenue,” the analysts add.
