OK, as the title suggests, I thought of capturing the analyst sentiment of FundTech before the acquisition of Accountis. So without further ado, here is a snapshot of analysis from three firms in Jan 2008:
D A Davidson & Co
BUY. Price on 9th Jan $10.60. Price Targets: 12 to 18 months $18, 5 year $40
Verdict: Target market volatility warrants some cautiousness, but risk/reward better than ever. Lowering estimates, maintaining BUY rating.
My Analysis of Analyst: Does not indicate compelling understanding of business proposition. Analysis purely on the back of financials both past and forecasts.
Wedbush Morgan Securities
BUY. Price $10.57 on 16th Jan. Price Targets: 12 months $14.50
Verdict: Downside analysis shows more resiliency than shares have shown; reducing estimates and target but reiterating BUY
My Analysis of Analyst: Mainly on financials but take the trouble to comment on the US economy and the resilience of products to a US economic downturn. No speculation or comments on strategy or growth.
NEUTRAL: Price $10.96 on 27th Jan.
Verdict: Relative to the S&P500 composite, has both growth and value characteristics. Its appeal is likely to be to Capital Gain oriented investors. FundTech is of low investment quality.
My Analysis of Analyst: Quite a lot of information to digest. Need to get some sleep!
BUY. Price $10.87 on 29th Jan. Price Targets: $18
Verdict: SEPA is here. Lowering price target.
My Analysis of Analyst: Obviously published after a key event and therefore carries lot more information than the other 3 analysts in terms of market and economic outlook. Too sleepy to do much more reading
I wish I had more time to go into detail and absorb what the analysts were saying. Above is just to capture some essence of the the conversation taking place. This reminds me of my MBA days when I used to read analyst reports on regular basis. Perhaps, its time to brush up! Good night!
PS: I will revisit these analysts later this month to capture their thoughts! Now wouldn’t it be great if these reports can be found on edocr.