Drexel Hamilton Maintains Buy, $8 Target on Actuate Corporation
Drexel Hamilton reiterates its Buy rating and $8 target on Actuate Corporation (NASDAQ: BIRT) as quarterly results came in mixed, but mid term outlook looks bullish.
Drexel Hamilton comments, "Yesterday after market close Actuate reported mixed 4Q11 results. Revenue was $35.3 million, essentially in-line with our estimate, but below consensus of $35.8 million. Non-GAAP EPS were $0.15, in-line with consensus, but above our $0.13 estimate due to expense control. ...Management thought total revenue could grow at least 10% y/y and if business was really good then revenue could grow upwards to 20% y/y. Additionally, management expected to contain both R&D and G&A expenses with the latter benefitting from the company moving headquarters to a lower cost nearby office space."
BIRT closed at $6.30 a share on Monday.
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