Piper Jaffray Raises Its Price Target on RightNow Technologies (RNOW)

Piper Jaffray is out with its report on RightNow Technologies RNOW raising its price target from $26 to $30. In a note to clients, Piper Jaffray writes, "RNOW raised Q4 guidance and announced a dilutive acquisition. Q4 guidance raised from $49.3M revenue to $51M revenue (with 27% subscription revenue growth), and PF EPS raised from $0.15 to $0.16. Total Contract Value bookings reached $90M, up from $85M in Q3, as RNOW noted business was strong in Q4. Acquisition of Q-go announced, $34M cash, $8M revenue expected in 2011 but roughly $0.12 PF EPS dilution. Our takeaway: strong results offset by dilutive tuck-in acquisition, structurally similar to CRM's two recent acquisitions, enhancing revenue growth opportunity." RNOW closed yesterday at $27.50, up 1.51% from Friday's close.