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.”
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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.