UPDATE: Benchmark Company Reiterates Buy Rating. Lowers PT on Progress Software Corporation on F1Q13 Reports, Lower 2Q Guidance

In a report published Thursday, Benchmark Company analyst Mark W. Schappel reiterated a Buy rating on Progress Software Corporation PRGS, but lowered the price target from $33.00 to $29.00. In the report, Schappel noted, “Last night, PRGS beat F1Q13 consensus revenue estimates and met our number for EPS. However, the company issued lower fiscal 2Q guidance, which likely reflects uncertainty related to its ongoing business transformation. While the lower outlook is likely to weigh on sentiment in the near-term, we think last night's print — the second consecutive quarter of reasonably good results —demonstrates continuing execution of the longer-term strategy of refocusing the company on its heritage business in application development, data integration and data analytics in the cloud. While PRGS is not yet out of the woods, evidenced by the lower F2Q guidance, we believe most of the heavy lifting from its restructuring activities is in the past, and a valid investment case for the stock can begin to emerge. We reiterate our Buy rating, though we are lowering our price target to $29, reflecting the lower outlook.” Progress Software Corporation closed on Wednesday at $22.28.