Credit Suisse analyst Jason Maynard Tuesday morning raised his rating on Right Now Technologies (NASDAQ:RNOW) to Outperform from Neutral, and increased his price target on the stock to $21 from $18.
“With the stock trading at 3x revenue, relatively low expectations, and strong end markets, we like the risk/reward tradeoff at current levels, and we think the odds are in favor of the stock working from here,” he wrote in a research note on the enterprise software provider.
The company has implemented a number of modifications to the business over the past 10 months which has led to some execution missteps, lowered expectations and caused the stock to underperform its peer group.
But he thinks demand for the company’s offerings “remains strong,” and that it should benefit from the business changes.
Maynard thinks second quarter results, which are due Wednesday, will be in line with expectations - the Street sees revenue of $26.7 million in the quarter and a loss of 12 cents a share - but writes that “expectations have been lowered to the point where there is good upside potential in the back half of the year.”