Robbie Stephens Cuts Sungard Rating
Robertson Stephens downgraded Sungard Data Systems (SDS ) to market perform from strong buy.
Analyst Andrew Jeffrey says recent channel checks indicate that technology officers at major investment banks are increasingly pessimistic regarding a second-half 2001 spending turnaround. He believes the company's internal revenue growth is likely to slow in the second half as the company comes up against difficult year-ago comps and is exposed to slower software-license revenue growth. He now estimates that ISS revenues will grow 11% in Q3 and 10% in Q4. He believes near-term downside risk exists toward $53. Despite the downgrade, Jeffrey continues to view Sungard as a competitively advantaged leader. He set a new $63 12-month target.