Credit Suisse put the boot into shares in Micro Focus International PLC (LON:MCRO) on Monday, downgrading its rating for the blue-chip software company to ‘underperform’ from ‘neutral’ following recent results.
In a note to clients, the Swiss bank’s analysts said: "Management delivered a poor interim results update, offering limited comfort on the medium-term future.”
READ: Micro Focus shares drop, says running about "one year behind" its original plan since HPE Software acquisition
They pointed out that they think this creates “a difficult equity story” and the analysts added that they increasingly wonder whether Micro Focus is better suited to a private equity environment.
In late morning trading, Micro Focus shares were 3.8% lower at 1,230p.
