JP Morgan Upgrades Ariba
JP Morgan upgraded Ariba (ARBA ) to long term buy from market perform.
Analyst Ian Morton says that given the steep 47% decline in the shares over the past month, he believes Ariba's valuation reflects challenges facing the company and the 12-month risk/reward scenario is attractive at these levels. While the March quarter will be back-end loaded, he believes fiscal year 2002 (ending September) EPS estimates are achievable, and that company execution and new products on schedule for the end of the quarter may drive upside in the second half of the year.
His channel checks suggest that demand and internal operations have stabilized, Ariba is holding up versus enterprise resource planning competitors, and its salesforce beginning to gel, Morton says.