CS First Boston Cuts Veritas Estimates

Analyst Wendell Laidley sees weakness in the OEM channel and lower sales closure rates

CS First Boston cut estimates and the price target on Veritas Software (VRTS ).

Analyst Wendell Laidley says Q1 results were slightly above estimates and he notes that OEM channel revenue remained strong. Still, the storage-management software provider suggested future contribution might experience a moderate drop.

Also, sales were distributed evenly in the U.S. and abroad, but U.S. market has become more challenging. Laidley cut the $1.789 billion 2001 revenue estimate to $1.675 billion, and cut the $0.90 2001 EPS to $0.84 on visible weakness in the OEM channel and signs of reduced closure rates in Veritas's direct salesforce. Laidley reiterates his strong buy on the company's solid fundamentals, but cut the $170 target to $85.

Before it's here, it's on the Bloomberg Terminal.