CSFB Keeps Hold on JD Edwards

Analyst Brent Thill thinks the supply-chain software maker's stock-price slide will be limited

CS First Boston maintained its hold rating on JD Edwards'(JDEC ) shares.

Analyst Brent Thill says the company's guidance is below his $0.01 EPS-breakeven and below his $241 million-$232 million revenue estimate -- the lowest expected revenue in two-plus years -- making the company's announced turnaround relatively short-lived. He notes the company's shortfall is tied to poor sales execution across products and consulting. He also notes that JD Edwards' new chief operating officer, Hank Bonde, is replacing Dave Girard nine months after its last management change.

Still, Thill expects the downside to Monday's closing stock price to be relatively limited going forward, given that the stock was trading at 1.4 times its current calendar 2001 revenue estimates.

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