Wedbush Maintains Outperform On Syniverse (SVR)

Wedbush Securities views SAP’s (ADR) SAP announced acquisition of Sybase SY as a positive for Syniverse SVR. The expected benefit is in terms of valuation and near term opportunity. The press has highlighted Sybase’s messaging and mobility assets, and the premium takeout multiple should be positive for Syniverse. A short term opportunity window is open to Syniverse now, as it tries to expand in the international market. SAP’s acquisition of Sybase is not expected to change the competitive landscape either. The price target has been set at $25, which is in line with the expected long term EPS growth rate of 12.5%.