Jan 21 (Reuters) - Shares of Amdocs Ltd DOX.N touched their year high on Thursday, a day after the phone-billing and customer management software maker reported strong quarterly results, prompting at least five brokerages to raise their price targets on the stock.
Management’s enhanced confidence is being driven by continued strength in managed services, stabilization in the project-based and European businesses, as well as shorter sales cycles, UBS wrote in a note.
”We were encouraged by the positive trends within managed services during the December quarter, as the segment will be a core growth driver during the second half of 2010 and beyond, Daniel Ives at FBR Capital Markets said.
Amdocs was upbeat on revenue for the current quarter, noting that growth was back and customers were willing to spend. [ID:nSGE60J0MK]
Amdocs’ several small contracts with carriers, including DAVE wireless, MetroPCS PCS.N, Clearwire and Vonage, represent a new growth avenue and could sum up to a noticeable amount, BofA Merrill Lynch analyst Tal Liani said in a note.
Liani upgraded the stock to “buy” from “neutral.”
Analyst Scott Sutherland of Wedbush noted that extended contracts with key managed service customers, AT&T (T.N) and Bell Canada (its two largest customers), improved long-term revenue visibility.
Shares of the company were trading up 4 percent at $29.72 Thursday on the New York Stock Exchange. They touched a high of $30.63 earlier in the session.
Below is a list of price target changes:
Brokerages Price target ($) Rating
Oppenheimer 35 32 Outperform
Kaufman Brothers 32 28 Hold
FBR Capital Markets 30 26 Market Perform
Wedbush 30 28 Neutral
UBS 29 27 Neutral (Reporting by Mansi Dutta in Bangalore; Editing by Anil D‘Silva)