Seeking Alpha

A roundup of tech ratings changes

  • ServiceNow (NOW +2.5%) has been upgraded to Outperform by Northland.
  • OpenTable (OPEN +1.6%) has been upgraded to Overweight by Piper.
  • Portugal Telecom (PT) has been upgraded to Buy by Berenberg a day after getting cut to Neutral by Citi, and two days after announcing plans to merge with Oibr.
  • iGate (IGTE -3.1%) has been cut to Neutral by Nomura.
  • Acxiom (ACXM -1.1%) has been cut to Underperform by BMO.
  • Align Technology (ALGN -3.4%) has been cut to Neutral by Baird.
  • NXP (NXPI +0.7%) has been started at Outperform by Pac Crest.
  • Sensata (ST +0.9%) has been started at Outperform by Wells Fargo.
  • RingCentral (RNG +0.2%), which went public just a week ago, has been started at Outperform by Northland.
Comments (1)
  • Playball!!! The valuations of IPOs done in the last couple of years is simply astounding. Despite huge valuations for companies of dubious quality, virtually all are rated 'buys' by the major brokerage houses. Why is this? I suspect there are many, many conversations like this happening these days...

     

    Head of Investment Banking (we'll call him Tim): Fixed income is pretty difficult these days. And capital intensive. We really need to be doing more in equities. Specifically IPOs.

     

    Head of Equity 'Research' (let's call him Mike): Despite the Chinese wall between us, I hear you.

     

    CEO of company (Ralph): We are all part of a team. And the way bonuses are going to be calculated is based on the combined performance of the Equity Research and Investment banking team.

     

    Tim: I'm going to need you to go through and rank everything IPO'd in the past three years a 'BUY' or 'STRONG BUY'. We need to get a piece of the secondaries. We need to get a piece of the billions in management stock sales. We need to get more M&A business. And most importantly, we need to show prospective IPOs that we are team players. On that note, be sure to co-ordinate with insiders when you enthusiastic pieces are coming out so they can sell into strength.

     

    Mike: Gotcha. We will use whatever metrics the companies give us to explain their success. We will use revenue, or adjusted EBITDA or eyeballs or clicks or whatever they want. We'll send our 'research' your way before we publish.

     

    Ralph: Good work guys. December is coming and I think you both are going to be very, very happy.
    4 Oct 2013, 11:26 AM Reply Like
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