Market Overview

UPDATE: Stifel Downgrades Model N Following Company Financial Update

Share:

In a report published Tuesday, Stifel analyst Tom Roderick downgraded the rating on Model N (NYSE: MODN) from Buy to Hold, and removed the $25.00 price target.

In the report, Stifel noted, “After the close on Monday, Model N issued an 8-K and corresponding press release providing a financial update ahead of the company's 180 day lock-up expiration. The company's updated guidance, calling for a revenue range of $20-21mn in F1Q14 (Stifel at $26.5mn) and $70-80mn in FY14 (Stifel at $114mn; Street at $118mn) is nothing short of mind-boggling, in our opinion. While the company had already called out sales execution issues on its F3Q13 earnings call while ousting former SVP of Global Sales Lawrence Whittle, the magnitude of the FY14 shortfall is nonetheless exceedingly difficult to explain, particularly as it was issued with three weeks left in the quarter. The company did not clearly articulate a plan to cut expenses in light of the $40mn+ revenue shortfall at the mid-point of the range. As more questions were raised than were answered on the update call, we are reducing our rating on shares of MODN to Hold from Buy.”

Model N closed on Monday at $14.73.

Latest Ratings for MODN

DateFirmActionFromTo
Oct 2018OppenheimerInitiates Coverage OnOutperform
Jul 2018NeedhamInitiates Coverage OnBuy
Feb 2018JMP SecuritiesUpgradesMarket PerformMarket Outperform

View More Analyst Ratings for MODN
View the Latest Analyst Ratings

Posted-In: Stifel Tom RoderickAnalyst Color Downgrades Analyst Ratings

 

Related Articles (MODN)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
PEPMorgan StanleyReiterates137.0
AZRXH.C. WainwrightMaintains7.0
PEPMacquarieMaintains138.0
POLBuckinghamMaintains36.0
BKBuckinghamMaintains53.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

UPDATE: Benchmark Raises PT on Liquidity Services Following Strong August GSS Results

UPDATE: Stifel Initiates Coverage on Sophiris Bio on Strong PRX302 Potential