Companies; Analyst Initiates Coverage of SEBL, RETK, JDAS, LWSN and PCAF
MENLO PARK, Calif., Sept. 17 /PRNewswire-FirstCall/ -- U.S. Bancorp Piper
Jaffray Senior Application Software Analyst Tad W. Piper today initiated
coverage of the following companies:
-- Siebel Systems (SEBL, $8.18, #) with a Market Perform rating and a $9
price target, based on 29 times 2003 estimate earnings-per-share (EPS)
-- Retek, Inc. (RETK, $4.39, #>) with a Market Perform rating and a $5
price target, based on 0.8 times enterprise value (EV) to 2003 revenues
of $231 million;
-- JDA Software Group, Inc. (JDAS, $12.70, #>) with a Market
Perform rating and a $11 price target, based on 20 times 2003E EPS of
-- Lawson Software, Inc. (LWSN, $3.72, @#>) with a Market Perform rating
and a $6 price target, based on one times enterprise value to calendar
year 2003 revenues of $405 million;
-- PrintCafe Software, Inc. (PCAF, $2.55, @#>) with an Underperform rating
and a $2 price target, based on an EV/sales multiple of 0.5 times our
2003 revenue estimate of $51 million.
Siebel's core strength is in sales force automation, but the company
dominates many other areas of customer relationship management as well,
including marketing automation, call center automation, field service and
partner management. Piper believes a guarded stance on Siebel is warranted
given the continued difficult selling environment coupled with a number of key
transitions -- restructuring of both property and personnel, a current product
upgrade cycle and the recent change in sales leadership -- currently facing
Piper believes that
caution for the retail software providers including
JDA Software and Retek, Inc. is warranted given recent consumer confidence
data and the uncertainty surrounding the upcoming holiday season leads us to
believe that retailers will be frugal with their information technology (IT)
spending in the near-term. In addition, Piper believes that forward
estimates may be susceptible to downward revisions should this persist.
Lawson is a provider of Web-based e-business application software, which
addresses the entire business lifecycle, improving the efficiency and
profitability of operations.
Growth expectations remain very attainable for
Lawson and the company has managed to keep the business on track despite the
difficult environment, said Piper.
Recent weakness in the stock provides
opportunity for long-term minded investors looking for a steady performer. A
material up-tick in growth will likely be necessary, however, to see an
expansion in multiples. Currently, this growth catalyst remains elusive.
PrintCafe is a provider of enterprise software solutions to the print
industry, which enables both printers and print buyers to automate and improve
the efficiencies of multiple stages of the printing process, from procurement
to production to distribution.
We believe that given the amount of current debt, meaningful appreciation
in the equity is unlikely in the near-term, said Piper.
valuation reflects much of this uncertainty, but we believe a potential
shortfall in the September quarter could provide some near term downside
Piper has been with U.S. Bancorp Piper Jaffray since 1999, most recently
as a research analyst covering infrastructure software companies. Prior to
joining U.S. Bancorp Piper Jaffray, he was an investment manager and
proprietary trader for Cargill Financial Services Asia in Singapore. From
1994 to 1997 Piper was an investment manager for Edinburgh Fund Managers in
Piper holds a bachelor of arts degree in political-economy from Williams
College in Williamstown, Mass. In addition, he holds a Chartered Financial
Analyst designation. Piper lives in Menlo Park, Calif., with his wife and
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SOURCE U.S. Bancorp Piper Jaffray
/CONTACT: Dana H. Wade, Public Relations, of U.S. Bancorp Piper Jaffray,
/Web site: http://www.piperjaffray.com /
(USB SEBL RETK JDAS LWSN PCAF)
CO: U.S. Bancorp Piper Jaffray; PrintCafe Software, Inc.; Lawson Software,
Inc.; JDA Software Group, Inc.; Retek, Inc.; Siebel Systems
ST: Minnesota, California
IN: FIN CPR STW MLM ITE
SU: RTG INO
-- MNTU010 --
5051 09/17/2002 14:02 EDT http://www.prnewswire.com