Saba Software downgraded to hold

by newratings.com,

Analysts at Wedbush Morgan downgrade Saba Software Inc (SABA) from "buy" to "hold." The 12-month target price has been reduced from $6 to $4.

In a research note published this morning, the analysts mention that the company may need to revise its guidance going ahead in view of SUMT’s recent cautious guidance indicating increasingly tough macro conditions. The analysts express their concern regarding a potentially tough IT spending environment in the US, given the near-term uncertainties.

Enterprise software stock multiples may continue to contract, Wedbush Morgan adds. Saba Software’s share price is likely to be range bound going ahead, despite the possibility of robust 3Q results, according to the analyst