Oppenheimer is upgrading the shares of CA Inc. CA to Outperform from Perform and establishing a price target of $29, based on the following: Attractive valuation; Continued solid execution; CA's Mainframe business's install base, while growing low single digit, provides the platform for non-Mainframe business product upsell which grows double-digit; Recent insider buying by CEO McCracken and EVP Dobson serves as a vote of confidence in CA's long-term strategy.
CA is finding success in its efforts to revitalize the mainframe ecosystem and is generating high mainframe renewal yields. CA continues to invest in this highly profitable, cash-rich business and should see growth in the low-single-digit % range. Cloud computing continues to be a key area where CA has a significant opportunity to help customers manage their cloud services. The cumulative market opportunity for CA could reach $11B by 2014, and Oppenheimer believes CA is well positioned to capture a market-leading position.
Oppenheimer views recent insider buying by CEO Bill McCracken (15K shares) and EVP David Dobson (2.5K) as a vote of confidence in CA's LT strategy.
CA closed Friday at $23.98
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.