Already a Bloomberg.com user?
Sign in with the same account.
SoundView cut its earnings estimates and price target for Siebel Systems (SEBL
). 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.