Wachovia Keeps 'Buy' on Business Objects

Analyst Karen Russilo says the new CFO has a strong track record; she also thinks the stock is undervalued

Wachovia reiterates buy on Business Objects (BOBJ ).

Analyst Karen Russilo says enterprise-software maker Business Objects named Jim Tolenen as CFO at its analyst meeting Monday. She says Tolonen formerly served as the CFO at IGN Entertainment and Novell. Russilo notes during Tolonen's 15 years at Novell, the company's revenues grew to $2 billion from $350 million.

Russilo says at its meeting, Business Objects discussed its new product release schedule and its pending Enterprise Performance Management strategy. While it's still early, she thinks the fourth quarter is tracking in line with her estimates of $121 million in revenues and 18 cents earnings per share.

She maintains her 84 cents 2003 earnings per share estimate, and says she believes the stock is undervalued at current levels. She also maintains her $21 target.

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