Wells Fargo upgraded JDA Software (JDAS) to buy from hold.
Analyst Eric Upin says he sees early signs of improvement. He notes the company had a significant first-quarter shortfall, it now looks like it's been able to close some deals it did not close in March and April, and may also close some large deals after none in the first quarter. He thinks JDA will also see improved consulting utilization rates which has revenue and gross margin implications.
Finally, Upin notes JDA's software targets retailers, which he sees benefitting from a tax cut. He upped the 3 cents second-quarter earnings per share estimate to 5 cents, and sees 23 cents 2003 earnings per share. He also raised the 40 cents 2004 earnings per share to 45 cents. He has a $17.50 12-month target.