Progress Software Corp (NASDAQ:PRGS) shares lived up to their name as they soared on Thursday in the wake of broker Wedbush reiterating a neutral stance on the stock.
The 12-month share price target is $24 – but on Thursday the stock was up 8.6% at $27.36.
“We remain on the sidelines with PRGS. PRGS's 2Q was pretty much as we expected: mild revenue out-performance coupled with a modest guide down for the full year. We continue to think that PRGS's 2H guide -- which relies on closing slipped OpenEdge deals -- looks aggressive, and that hoped-for growth from the acquired Telerik business may not materialize,” Wedbush said.
“We think PRGS may be facing secular headwinds in its Telerik tools business, and that OpenEdge will continue to be flat at best. (We think the latter result is commendable, and speaks to the company's success in modernizing a platform that had its genesis 40 years ago). For the balance of the year, we remain cautious on fundamentals, and we think PRGS is more likely to trade down rather than up from current levels.”
But the broker said it was concerned the second half guide looks aggressive.
“Even though management took a more cautious view on EMEA and Telerik bookings to reduce its full-year revenue outlook by $2M, the outlook still requires a sharp Y/Y upturn in 2H license revenue from closing the large OpenEdge direct deals in the pipeline, which looks iffy to us. PRGS's reduction of its Telerik bookings guidance to mid-single digits (from low to mid-teens) looks realistic given maturation of the .NET tools market, but it doesn't provide us with comfort that the company's long-term goal of 20% Telerik bookings growth is achievable,” Wedbush said.
Meanwhile, Newmont Mining Corp (NYSE:NEM) advanced by 3.8% to $39.13 on Thursday after broker Mackie Research retained its “hold” recommendation and set a price target of $45.
“NEM remains the premier ‘go-to’ gold name in the US which, along with decreasing debt and a more stable asset portfolio, has led us to increase our multiple to 1.5x (from 1.2x). After accounting for the sale of the Indonesian assets, our NAV/sh declines to $30.41 from $31.38 previously. As a result of our new multiple, our target increases to $45.00/sh,” Mackie said in a note.