Morgan Stanley Equal-weight on DemandTec

Morgan Stanley is out with a research report on DemandTec DMAN and it has a Equal-weight rating on shares. In a note to clients, Morgan Stanley writes, "Q2 rev. and EPS met expectations, but renewal rates were in the 70's for the third quarter in a row and deferred rev. was shy of our expectations. Management was more bullish on the earnings call than they were the last 2 Qs, and the company expects renewals to trend back into the 90s over the next few quarters while pipelines remain strong, but DMAN also downticked slightly on FY12 guidance and we believe investors may be skeptical in the near-term until signs of improvement are more tangible given three challenged quarters in a row, a weakening macro, and a more difficult retail environment. We still see big wins as potential upside opportunities, but prefer to stay on the sidelines for now given the uncertain outlook." Shares of DMAN gained 13 cents yesterday to close at $6.05, a gain of 2.2%.