Market Overview

D.A. Davidson Initiates Coverage On NetSuite & Marketo, Cites Revenue Growth

Share:

NetSuite (NYSE: N) and Marketo (NASDAQ: MKTO) both got coverage initiation Wednesday with Buy ratings that shared an appreciation for fast revenue growth and market leadership in the business software sector.

D.A. Davidson's Jack Andrews set a $29.20 target for Netsuite, a subscription-based business management software company that is 50 percent held by Oracle founder and Chief Executive Larry Ellison.

The cloud-based company is growing revenue at more than 32 percent.

Andrews views NetSuite as a leader in providing subscription-based management software to mid-sized companies, and said the market for such services is "in the early stage." Andrews hung a $109 target on the company.

"The key to the Netsuite story has been its ability to move up-market into larger organizations and gain share," Andrews said.

Andrews hung a $49 target on Marketo, which provides software for automated marketing.

Andrews called the segment "one of the few greenfield opportunities" in software, and sees Marketo revenue growth of 52 percent this year.

Although about 100 companies offer automated marketing software, including Salesforce.com, yet "the current competitive environment appears benign," Andrews said.

Andrews also initiated coverage Wednesday on four other business software companies with Neutral ratings: Oracle, Cornerstone OnDemand, Concur Technologies and Workday.

Latest Ratings for N

DateFirmActionFromTo
Oct 2016DowngradesBuyNeutral
Aug 2016DowngradesBuyNeutral
Aug 2016DowngradesBuyNeutral

View More Analyst Ratings for N
View the Latest Analyst Ratings

Posted-In: D.A. DavidsonAnalyst Color Price Target Initiation Analyst Ratings

 

Related Articles (N + MKTO)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
TORCCantor FitzgeraldDowngrades3.0
CIDMCanaccord GenuityMaintains1.5
TDGCanaccord GenuityMaintains620.0
DLPNCanaccord GenuityMaintains1.6
WBCLSADowngrades
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

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Midday Gainers From Wednesday, August 27

Midday Losers From Wednesday, August 27