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Credit Suisse Downgrades Textura Amid Executive Departures

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Credit Suisse Downgrades Textura Amid Executive Departures

  • Shares of Textura Corp (NYSE: TXTR) have declined 10.54 percent year-to-date, reaching a low of $23.44 on November 17.
  • Michael Nemeroff of Credit Suisse has downgraded the rating on the company from Outperform to Neutral, while lowering the price target from $27 to $24.
  • The downgrade follows the announcement that Patrick Allin had resigned from his position as Executive Chairman, as well as from the company’s board.
  • Analyst Michael Nemeroff believes that the departure of the co-founder and former CEO of Textura Patrick Allin would increase near-term sales execution risk, “as he was a key relationship manager for many of the company's large general contractor and owner customers.”

    Nemeroff also believes that Allin’s departure might also affect the company’s near-term ability to build its sales pipeline and convert prospective customers who are in the “sales funnel” at present.

    Related Link: Credit Suisse Downgrades Textura To Neutral, Lowers PT To $24

    “Despite our belief that TXTR's product portfolio provides significant value to customers throughout the commercial construction industry, and that the company's financial model is compelling and will show significant leverage at scale,” Nemeroff believes that the risk/reward is currently fairly balanced.

    The revenue growth and EPS estimates for 2016 have been lowered from 32.5 percent year-on-year to 30.1 percent year-on-year, and from $0.58 to $0.50, respectively.

    Image Credit: Public Domain

    Latest Ratings for TXTR

    DateFirmActionFromTo
    May 2016JMP SecuritiesDowngradesMarket OutperformMarket Perform
    Feb 2016Credit SuisseMaintainsNeutral
    Feb 2016BenchmarkUpgradesSellHold

    View More Analyst Ratings for TXTR
    View the Latest Analyst Ratings

     

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