Analyst David Beck says the 27 cents fourth-quarter EPS is below the 28 cents consensus and his 30 cents estimate. He says although management kept the $1.10 to $1.30 fiscal 2005 EPS (adjusted) estimate, the guidance includes the impact of two recent acquistions, therefore, he views the fiscal 2005 (June) guidance as representing a downward revision.
Beck believes the Ixos integration risk has been moderated to an extent. He says recent acquisitions of Artesia and Vista Plus appear to have been executed at an attractive valuation and pose minimal integration risk. With a $34 target, he believes the continued sell-off is an attractive buying opportunity.