Oppenheimer Maintains Outperform, Raises PT to $17 on Tangoe

Oppenheimer reiterates its Outperform rating on Tangoe (NYSE: TNGO) and raises its price target to $17 from $16 per share as accretive ProfitLine acquisition bolsters CLM capabilities.Oppenheimer comments, "AHs, TNGO announced its purchase of ProfitLine for roughly $23.5 million in cash.The privately-held, California-based, ProfitLine is one of the biggest pure play communication lifecycle management (CLM) vendors in the space. We view this as a solid acquisition for TNGO, as it simultaneously takes out a healthy competitor and provides both plenty of up-sell/cross-sell opportunities for Tangoe and an entry into the federal-vertical (25% of ProfitLine's business is government). Additionally, as we believe one of TNGO's core competencies is M&A, we expect it to successfully migrate ProfitLine's customers to its platform and realize operational synergies in 2012."TNGO closed at $4.93 per share on Monday.