CNET también está disponible en español.

Ir a español

Don't show this again

Sonos Arc review Watch George Floyd's memorial service GTA Online, Red Dead Online outage for George Floyd memorial CES 2021 plans to be physical Snapchat will no longer promote Trump's account Sega Game Gear Micro

Computer Associates jumps on upgrade, BMC buzz

Computer Associates shares rallied up $4.25, or 20 percent, to $25.56 Thursday after Prudential Securities upgraded the stock from a “hold” rating to an “accumulate” recommendation.

Analyst John McPeake said BMC Software’s (Nasdaq: BMCS) positive pre-announcement likely signals a bottom for Computer Associates and the rest of the mainframe software sector.

BMC, which McPeake upgraded from a “hold” rating to a “strong buy,” shot up $6.31, or 41 percent, to $21.94.

“With CA's stock trading near 5-year lows, at the current valuation we think downside risk is limited,” he said in a research note.

Last quarter, Computer Associates (NYSE: CA) topped analysts’ reduced estimates, earning $321 million, or 54 cents a share, on sales of $1.68 billion.

First Call Corp. consensus expects it to earn 40 cents a share in its third quarter on sales of around $1.4 billion.

The stock moved as high as $79.44 in January before falling to a 52-week low of $18.13 in December.

Eleven of the 20 analysts tracking the stock maintain either a “buy” or “strong buy” recommendation.