UPDATE: Deutsche Bank Initiates Rally Software with Buy on Multiple Positive Factors

In a report published Tuesday, Deutsche Bank analyst Tom Ernst Jr. initiated coverage on Rally Software Development Corp. RALY with a Buy rating and $25.00 price target. In the report, Ernst noted, “Rally is a leading provider of solutions for managing Agile software development. The company's tools transform the software creation lifecycle by closely aligning the development process with business objectives and facilitating collaboration among all stakeholders. The company's enterprise-class platform is delivered through multi-tenant SaaS or a disciplined single codestream on-premise offering. Rally is well positioned to benefit from a secular shift to greater utilization of Agile methodologies. With a large and underpenetrated addressable market, secular tailwinds, conservative estimates and numerous growth drivers we initiate with a Buy and $25 PT.” Rally Software Development Corp. closed on Monday at $19.32.