Piper Jaffray Upgrades RightNow Technologies (RNOW)

Piper Jaffray is upgrading shares of RightNow Technologies RNOW to Overweight, and has an $26 price target. In a note sent to clients, Piper Jaffray writes, "We are upgrading shares of RNOW to Overweight as we view the recent sell-off as unwarranted and now see 31% upside to our $26 target. Checks indicate a healthy deal pipeline heading into 2011 as RightNow leverages its position as the only vendor in the leadership quadrant for all three Customer Experience categories (Web, Social, and Contact Center). RNOW shares are up only 11% in the last 12 months versus 56% for SaaS comparables, and now trade at 2.7x EV/FTM revs versus 4.9x for the peer group, representing a 45% discount. Fundamentals should drive a narrowing of this valuation gap in 2011, while 2012 should mark a resounding turning point for RNOW's cash generation. Updating model to reflect recent convertible debt offering. Overweight, $26 target." Shares of RNOW plunged at the close yesterday, losing $3.01 to $19.79, a loss of 13.2%.