UPDATE: Citigroup Raises PT on Amdocs Following In-Line Results

In a report published Thursday, Citigroup analyst Ashwin Shirvaikar reiterated a Buy rating on Amdocs DOX, and raised the price target from $41.00 to $44.00.

In the report, Citigroup noted, “DOX remains a Buy and we are modestly raising our price target to $44 from $41 as we move the valuation basis to FY14 from FY13….We note this is not the place for excitement from an operating results perspective…DOX had in-line results (vs. consensus). 4Q-FY13 guidance ranges straddled expectations and were slightly ahead of fiscal 3Q13 performance (once we offset the 3Q, 4Q tax rate impact). It signed a major European contract - should help European revenues that had been criticized for lagging – but ‘Rest of World' revenues tailed off – slowing sub growth and economic malaise are equally to blame here. N. America gets steadily better but sector-M&A-related revenues are a FY14 (not FY13) event. Lastly, cash continues to build on the bal sheet despite the ongoing buyback – we would not rule out a greater dividend in a quarter or so. We look for the stock to appreciate steadily over time.”

Amdocs closed on Wednesday at $38.47.