Update: Deutsche Bank Raising Price Target On RightNow Technologies After Earnings (RNOW)

Deutsche Bank has a Hold rating and a $33 price target on shares of RightNow Technologies RNOW after it reported earnings. In a note to clients, Deutsche Bank writes, "RightNow reported revenue of $52.3m that was slightly ahead of our/Street estimates of $51.5m/52.1m. EPS of $0.10 beat our/Street estimates of $0.08. Current portion of software backlog grew a record 38% vs 28% in 4Q. We estimate inorganic revenue growth contribution from Q-go was ~2%. The company also raised FY11 revenue and EPS guidance. We believe that these results show strong business momentum, but see balanced risk/reward at current levels. Maintain Hold, raise PT to $33 (from $30)." Deutsche Bank goes on to say, "We reiterate our Hold rating and raise our PT to $33 (up from $30). Our target is based on CY12 uFCF estimate of $1.03 and an EV/uFCF/G multiple of 1.2x (in line with SaaS peers) and a '12-'17 uFCF/share growth rate of 27% (from 25%). Primary downside risk factors include: new, competitive entry into SaaS; risks associated with the successful hosting of software, execution risks related to expansion opportunities. Upside risks include continued competitive strength that leads to greater market share in the contact center." Shares of RNOW lost 70 cents yesterday to close at $32.95, a loss of 2.08%.