Credit Suisse First Boston reiterates buy on Retek (RETK).
Analyst Brent Thill thinks the Internet software company's second quarter is tracking to his $60.6 million total revenue (13% sequential growth), and $0.10 earnings per share estimates. He says his contacts suggest a pipeline rich with strategic, tactical and point solution deals that help spread dependence on elephant-sized deals. He notes underlying strength is spread across both U.S. and international markets, and he believes a one multi-million dollar deal is already closed with a top European retailer.
Thill says the mid-market (tier 2) represents enormous upside going forward as Retek's dominant position in tier 1 cascades downstream. He has a $35 target.