Mizuho Securities analyst Abhey Lamba assigned a Hold rating to CA Inc (NASDAQ: CA) yesterday and set a price target of $34. The company’s shares opened today at $35.74.
Lamba wrote:
“We acknowledge strategic and operational efforts here to make this happen – on the go-to-market side, reps are being encouraged to sell subscriptions vs. perpetual. As with other model transitions, the pace of subscription uptake is inherently unpredictable in the early days; that said, mgmt. appears to have de-risked estimates at this point. FY19 guidance reiterated. Management reaffirmed its full-year outlook across metrics provided post the F4Q print. Incrementally, the company provided guidance around ARR for the first time with the metric expected to take on more importance now that ASC 606 has been adopted (given lumpiness of term deals under the new standard). ARR is expected to grow 1-2% in FY19 and 3-5% annually over the next few years.”
According to TipRanks.com, Lamba is a 5-star analyst with an average return of 14.5% and a 72.1% success rate. Lamba covers the Technology sector, focusing on stocks such as CommVault Systems, Microstrategy Inc, and Ultimate Software.
Currently, the analyst consensus on CA Inc is Hold and the average price target is $35.67, representing a -0.2% downside.
In a report released yesterday, Credit Suisse also assigned a Hold rating to the stock with a $37 price target.
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Based on CA Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $1.08 billion and net profit of $206 million. In comparison, last year the company earned revenue of $1.01 billion and had a net profit of $155 million.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock.
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CA, Inc. engages in the provision of information technology management software and solutions. It operates through the following segments: Enterprise Solutions, Mainframe Solutions and Services. The Enterprise Solutions segment includes products that are designed for distributed and cloud computing environments and run on industry standard servers.
