First Albany upgraded BEA Systems (BEAS) to buy from neutral.
Analyst Damian Rinaldi says fourth-quarter results beat his estimates on both top and bottom line. He believes business momentum should carry forward. Rinaldi says a combination of a large deal flow, a solid increase in deferred revenue, and improved guidance relative to expectations going into the first quarter gives him more confidence than he had previously that the company is holding its own against competition and improving its execution.
Rinaldi maintains the 38 cents proforma fiscal 2005 (Jan.) earnings per share estimate, but raised the $1.073 billion fiscal 2005 revenue estimate to $1.119 billion. For fiscal 2006, he sees 45 cents proforma earnings per share on $1.211 billion in revenues. Rinaldi has a $15 target.