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UPDATE: FBN Securities Initiates Actuate at Outperform on Upside Outlook

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Open Text Agrees To Acquire Actuate For $6.60 Per Share

FBN Securities initiated coverage on Actuate (NASDAQ: BIRT) with an Outperform rating and a $9 price target.

FBN Securities noted, "Investor expectations are much lower than the upside suggested by management. As noted above, Actuate is currently experiencing very strong license growth, approaching 30%. Actuate management believes that a F2011-F2016 license CAGR of 30-40% and a services CAGR of 6-10% is possible. This works out to a blended revenue CAGR of 13-17%, which is above our estimate of closer to 10%. Management also believes that it could obtain a NG operating margin of 35-40% in F2016; this is also much higher than our 23% estimate. Therefore, if management is even approximately correct, there would be ample upside in the stock."

Actuate closed at $6.53 on Wednesday.

Latest Ratings for BIRT

May 2014B. RileyDowngradesBuyNeutral
Feb 2014Drexel HamiltonDowngradesBuyHold
Dec 2013JMP SecuritiesDowngradesMarket OutperformMarket Perform

View More Analyst Ratings for BIRT
View the Latest Analyst Ratings

Posted-In: FBN SecuritiesAnalyst Color Initiation Intraday Update Analyst Ratings


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