) to hold from buy on Friday, citing the company's quarterly results.
Analyst Tom Liston said that following a solid fourth quarter, he's disappointed that Geac was not able to carry over momentum into a stronger performance in the first quarter; he notes that license revenue is down 16% year over year. While the company has internally developed several new products to enhance its growth, it will likely need to make an acquisition to increase its license revenue as a percentage to total revenue.
The downgrades takes place given the company's stock price appreciation in the last few months and the absence of a near-term catalyst. Liston sees 76 cent fiscal year 2006 (ending April) earnings per share.