). SoundView kept its hold rating on the shares.
Analyst Jim Mendelson tells S&P MarketScope that he cut his EPS estimates from $0.62 to $0.55 for 2002, and his revenue forecast from $2.182 billion to $2.081 billion, which reflects a reduction in license revenue. He also cut his $40 target to $35.
While the Gartner-SoundView survey suggests demand for CRM applications remains healthy, he believes spending is back-end loaded this year, Mendelson says. Although he expects the company to meet first quarter estimates, he believes near-term numbers will trend lower.
The shares are down sharply; Mendelson cites "unconfirmed" newswire running that the company says the first quarter is worst in its history. This is a sharp change from the company's outlook, but could set the stage to back peddle, he says.