CS First Boston Trims Siebel Estimates

Analyst Brent Thill says the first quarter was one of the tougher quarters ever for application software companies

Credit Suisse First Boston cuts estimates on Siebel (SEBL ).

Analyst Brent Thill says evidence mounts that the first quarter was one of the tougher quarters for application software companies -- companies such as PeopleSoft and i2 Technologies, plus others, pre-announced -- and for for broader IT spending (such as IBM's large miss) in his recent memory.

He says Siebel is not entirely immune from this macro-environment's unpredictable budget allocations. He cut his second quarter through fourth quarter sequential license revenue growth estimates to 8%, 8% and 11%, respectively -- bringing his year to year license growth estimate to 4%, down from 12% -- below Seibel's 15% guidance.

Thill also cut his discount cash flow-based target from $40 to $34. While keeping his buy rating, Thill says he would recommend more aggressive buying if the stock nears $20.

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