Pacific Crest Boosts i2 to 'Buy'
Pacific Crest upgraded i2 Technologies (ITWO ) to buy from market perform.
Analyst Brendan Barnicle says his talks with channel sources indicated the beginning of an uptick in the supply chain generally and i2 specifically. He also cites recent news from i2 on deals with Procter & Gamble, Kraft, and Halliburton, giving him the conviction that things are getting better. He notes channel checks also show i2 is more successful at smaller deals, which was one of the prior criticisms of the company (i.e., it was too dependent on large deals.)
Barnicle notes i2 has changed its commission structure to increase incentives for smaller deals. He sees a $0.06 Q2 loss, breakeven for 2001, and $0.26 EPS in 2002. He has a $30 12-month target.