Deutsche Bank Maintains Rating, PT On CA

Deutsche Bank, citing missed expectations in the quarter, is maintaining its Buy rating and its $29 price target on CA Inc. CA . According to Deutsche Bank, “CA's results generally underperformed expectations, except the total bookings number. Bookings for the quarter were $1.9b, up 31% y/y, but were positively impacted by a single 5-year $500m transaction. The current revenue backlog grew 5% y/y showing slight improvement over the previous quarters. Overall, we believe that meaningful acceleration in growth still eludes CA and the business has still not reached an inflection point. At 8x EV/FCF, the downside is limited and risk/reward attractive.” CA closed yesterday at $25.06.