UPDATE: Oppenheimer Upgrades CA Inc. To Outperform With a $29 PT

Oppenheimer is upgrading the shares of CA Inc. CA to Outperform from Perform and establishing a price target of $29, based on the following: Attractive valuation; Continued solid execution; CA's Mainframe business's install base, while growing low single digit, provides the platform for non-Mainframe business product upsell which grows double-digit; Recent insider buying by CEO McCracken and EVP Dobson serves as a vote of confidence in CA's long-term strategy.

CA is finding success in its efforts to revitalize the mainframe ecosystem and is generating high mainframe renewal yields. CA continues to invest in this highly profitable, cash-rich business and should see growth in the low-single-digit % range. Cloud computing continues to be a key area where CA has a significant opportunity to help customers manage their cloud services. The cumulative market opportunity for CA could reach $11B by 2014, and Oppenheimer believes CA is well positioned to capture a market-leading position.

Oppenheimer views recent insider buying by CEO Bill McCracken (15K shares) and EVP David Dobson (2.5K) as a vote of confidence in CA's LT strategy.

CA closed Friday at $23.98