Art Technology Group: Roth Upgrades, Stock Rallies
Art Technology Group (ARTG) shares are up nicely this morning after Roth Capital’s Nathan Schneiderman raised his rating on the stock to Buy from Hold. Schneiderman notes that the e-commerce software provider’s shares have fallen 25% from a recent peak, creating “a very attractive entry point.”
Schneiderman writes in a research note that the stock’s valuation has fallen to just over 10x free cash flow, “a bargain for a profitable growing company.”
“While we understand that macro conditions are a scary backdrop and that many software names have been pummeled, we point to premium valuations for growth names that are executing - e.g., Ariba (ARBA), Informatica (INFA), Salesforce.com (CRM) and Ultimate Software (ULTI) - to suggest that ARTG could indeed get an attractive valuation even in a tough environment.”
Schneiderman maintains a $4 price target on the stock. ARTG today is up 19 cents, or 6.4%, to $3.17.
Tech Trader Daily is a blog on technology investing written from Palo Alto, California by long-time Barron's West Coast Editor Eric J. Savitz. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields.
