RBC Capital upgraded Retek (RETK) to outperform from sector perform.
Analyst Cameron Steele says the upgrade is due to an improving business outlook and attractive valuation. He notes the company appears to be benefiting from improving business activity early in 2003, which he believes to be a fundamental change, not a business aberration. He says large Retek partners indicate that business activity early in 2003 is noticeably up vs. any time over the past couple of quarters -- he thinks this translates into improving business linearity in the first quarter, and potential upside to his 2003 estimates. He sees a three-cent loss, and 14 cents 2004 earnings per share. Steele raised his $4.50 target to $8.