UPDATE: Credit Suisse Raises PT on Concur Technologies Following Removal from Focus List

In a report published Monday, Credit Suisse analyst Michael Nemeroff reiterated an Outperform rating on Concur Technologies CNQR, and raised the price target from $106.00 to $118.00.

In the report, Credit Suisse noted, “Despite the removal from the U.S. Focus List we still recommend CNQR shares, as we believe the ramp-up in government-related revenue on top of strong enterprise customer wins could cause growth to accelerate over the next 2-3 years above the +25% we believe management could initially guide for F2014. Since putting CNQR on the U.S. Focus List, the company has signed over 70% of the addressable ETS2 transactions; a handful of those agencies have already gone live several qtrs sooner than expected. The initial success with ETS2 deployments could also set a positive precedent for CNQR to win a share of the similarly-sized Department of Defense RFP that could come as early as April 2014. However, if the GSA reverses its decision to exclude Carlson Wagonlit from ETS2 which is currently sole-sourced to CNQR, that may be a headline risk for CNQR shares. But we would note that if Carlson is let into ETS2 CNQR's price to the GSA will increase ~+8% under a dual award pricing structure and recommend investors buy on any potential pull-back.”

Concur Technologies closed on Friday at $100.39.