Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Prudential Downgrades Computer Associates to 'Hold'


Prudential downgraded Computer Associates (CA) to hold from buy.

Analyst John McPeake cut his $45 target to $22. He says he thinks the SEC's focus on prior periods makes the company's earnings per share restatement more likely. He's also concerned that managment may be distracted from its core business, and that customers could postpone purchases during this investigation. He notes that while investors will likely assume lower target multiples, he's lowering his estimates and target.

McPeake says he remains positive on the mainframe upgrade and server consolidation cycle. He thinks Computer Associate's product set is well exposed in security, storage and system management, but thinks it is prudent to step aside and let the investigation and related issues play out.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus