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

Merrill Downgrades Stellant Rating


Merrill Lynch downgraded Stellent (STEL) to long term neutral from strong buy.

Analyst Scott Phillips says fourth quarter revenues and the per share loss was worse than he forecast. He notes days of sales outstanding spiked up to 119 days despite a 33% fall in receivables. Phillips says earnings quality is the biggest concern. He sees limited prospects for meaningful growth before the end of fiscal 2003 (Mar.).

Phillips thinks the content managment software market is likely to remain challenging for the next few quarters. He believes the stock is likely to remain under pressure in the months ahead, and recommends investors sit on the sidelines pending concrete evidence of improved sales and EPS quality. He sees a $0.79 fiscal 2003 03 loss and rates the shares as near term neutral.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus