Merrill Lynch maintains its "Buy" rating for billing and CRM company Amdocs (NYSE: DOX) after the results the company announced yesterday. Although Amdocs reduced its guidance, Merrill Lynch says that this is already built into the share price.
Merrill Lynch maintains the $25 price target it set on January 16. This compares with a current price of $15.31, down more than 17% on yesterday's close.
RBC also sets a $25 price target for Amdocs, down from $32, and maintains an "Outperform" rating. "Macro headwinds are hitting carrier spending faster and deeper than anticipated and this is compounded by unfavorable ForEx impact," it comments, but adds, "Despite the revenue drop, Amdocs is set to maintain core profitability." Like Merrill Lynch, RBS says the company's lower guidance is already at least partly factored into the share price, and concludes its report by saying, "Following initial weakness, shares will likely remain range-bound pending improved execution and recovery of investor confidence to the story."
Published by Globes [online], Israel business news - www.globes.co.il - on January 22, 2009
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