Jive Software: Mixed Call In First Wave Of Analyst Ratings
The post-IPO quiet period now out of the way, the Street this morning weighed in with the first wave of research reports on Jive Software, which provides social collaboration software for enterprise customers. The results were mixed, and the stock is trading modestly lower.
The company went public in December at $12 a share, and closed Friday at $15.25.
Goldman Sachs analyst Heather Bellini launched with a Neutral rating and $16 target. “We view Jive as well positioned as we see it as a key enabler in changing how companies interact and collaborate with their customers, employees and partners both internally and externally,” she writes. “However, we believe the stock already trades at the appropriate premium valuation (7.0x our 2012 billings estimate vs. an
average of 6.0x for leading SaaS companies) and, as such, we await data points to support a shift upward in our currently forecasted growth trajectory to become more constructive.”
UBS analyst Brent Thill likewise has launched coverage with a Neutral rating and $16 target.
Wells Fargo analyst Jason Maynard similarly picks up coverage with a Market Perform rating and $15-$17 valuation range. “We see growth opportunities for further market penetration, along with additional platform product extensions,” he writes. “We believe Jive is a well-positioned, long-term growth company, but feel the shares are only modestly undervalued at current levels.”
Citigroup analyst Walter Pritchard sets a Buy rating and $20 target. Pritchard thinks the company will eventually get acquired. “As leader in enterprise social, we expect larger companies such as SAP and IBM are potential buyers,” he writes. “Multiples have been high for category leaders in emerging strategic markets. Our takeout analysis suggests valuation of $21-24 in one year.”
Morgan Stanley analyst Adam Holt starts the company with an Overweight rating and $20 target. “Jive is the leader in enterprise social and is levered to several important secular growth trends: cloud, social, mobile, big data, Consumerization, and others,” he writes. “We believe strong endmarket demand and Jive’s best-in-class positioning should drive 40%+ revenue growth medium term.”
JIVE is down 25 cents, or 1.6%, at $15.
Source: http://www.forbes.com
Tags: Software