Jefferies Initiates CPWR At Buy

Jefferies has initiated coverage on Compuware CPWR with a Buy rating and a price target set at $11. In its report, Jefferies writes, “Compuware's growth assets will continue to have greater influence on the aggregate model and, with a more favorable mainframe renewal potlook, the company should see a combination of revenue growth acceleration and margin expansion. At 13x earnings and 12x cash flow we believe the risk-reward still favors the long side and are initiating with a Buy.” CPWR closed at $8.16 yesterday.