Model N Lowered to Hold at Stifel Nicolaus (MODN)
Model N (NASDAQ:MODN) was downgraded by research analysts at Stifel Nicolaus from a “buy” rating to a “hold” rating in a report released on Tuesday, TheFlyOnTheWall.com reports. They currently have a $25.00 price objective on the stock. Stifel Nicolaus’ price target indicates a potential upside of 69.72% from the company’s current price.
The analysts wrote, “After the close on Monday, Model N issued an 8-K and corresponding press release providing a financial update ahead of the company’s 180 day lock-up expiration. The company’s updated guidance, calling for a revenue range of $20-21mn in F1Q14 (Stifel at $26.5mn) and $70-80mn in FY14 (Stifel at $114mn; Street at $118mn) is nothing short of mind-boggling, in our opinion. While the company had already called out sales execution issues on its F3Q13 earnings call while ousting former SVP of Global Sales Lawrence Whittle, the magnitude of the FY14 shortfall is nonetheless exceedingly difficult to explain, particularly as it was issued with three weeks left in the quarter. The company did not clearly articulate a plan to cut expenses in light of the $40mn+ revenue shortfall at the mid-point of the range. As more questions were raised than were answered on the update call, we are reducing our rating on shares of MODN to Hold from Buy.”
Several other analysts have also recently commented on the stock. Analysts at Raymond James downgraded shares of Model N (NASDAQ:MODN) from an “outperform” rating to a “market perform” rating in a research note to investors on Tuesday. Separately, analysts at JPMorgan Chase & Co. downgraded shares of Model N (NASDAQ:MODN) from an “overweight” rating to a “neutral” rating in a research note to investors on Tuesday.
Five equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. The company has an average rating of “Hold” and an average price target of $25.50.
Model N (NASDAQ:MODN) traded down 31.68% during mid-day trading on Tuesday, hitting $10.064. 1,570,130 shares of the company’s stock traded hands. Model N has a one year low of $14.29 and a one year high of $24.80. The stock has a 50-day moving average of $19.2 and a 200-day moving average of $20.2. The company’s market cap is $231.0 million.
Model N (NASDAQ:MODN) last posted its quarterly earnings results on Thursday, August 8th. The company reported $0.14 EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.02) by $0.16. The company had revenue of $27.20 million for the quarter, compared to the consensus estimate of $26.99 million. The company’s quarterly revenue was up 19.3% on a year-over-year basis. On average, analysts predict that Model N will post $0.16 earnings per share for the current fiscal year.
Model N Inc is a United States-based company, which provides revenue management solutions for the life science and technology industries.
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