Jefferies Initiates Coverage On CA

Jefferies is initiating coverage on CA Technologies CA with a Hold rating and a price target set at $23. According to Jefferies, “We believe the dearth in the renewal pipeline growth provides a modest headwind that counters near-term revenue growth acceleration trends and a compelling valuation. The company has made significant progress in transforming its monolithic model but the timing to see the relevant metrics grow in tandem is likely in the out year and as such, we are initiating with a Hold.” CA closed yesterday at $19.93.