UBS Upgrades Siebel Systems to Neutral

Analyst Heather Bellini cites improved license revenue performance for the software maker

UBS Financial upgraded Siebel Systems (SEBL ) to neutral from reduce.

Analyst Heather Bellini says the upgrade was based on Siebel's license revenue performance, improved revenue visibility, and overall uptick in application sending .However, concerns regarding SAP's customer relationship management gaining more share in the U.S. market prevents her from upgrading Siebel to buy.

She says Siebel unexpectedly pre-announced positive first-quarter results. Bellini adjusted the $544 million license revenue estimate to $566 million, and upped the 30 cents 2004 earnings per share estimate to 32 cents to reflect strength in the quarter, and the company's firming pipeline. She sees 40 cents 2005 earnings per share, and raised her $10 target to $12.50.

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