CS First Boston reiterated its buy rating on shares of business-to-business software maker Retek (RETK).
Analyst Brent Thill says Retek is off to a strong start in Q2; he feels comfortable the company can hit his $40 million total revenue and $0.01 loss per share estimates. Thill says he met this weekend with consultants from Best Buy, one of the largest consumer electronic distributors in North America. He notes Best Buy is going live with Retek this week after a four-month implementation; the new system will replace the retailer's legacy "green screen" system and enable Best Buy to more accurately align product inventory with customer demand across 420 retail storefronts. The analyst says leverage from the offering of Retek products by the IBM salesforce has yet to hit; thinks this relationship will provide another potential revenue catalyst in the second half of 2001.