Globe says Li maintains Softchoice at "outperform"
2013-02-22 07:49 ET - In the News
The Globe and Mail reports in its Friday, Feb. 22, edition that Raymond James analyst Steven Li is sticking with his "outperform" rating on Softchoice ($14.90). The Globe's Darcy Keith writes in the Eye On Equities column that Mr. Li has upgraded his target price on the shares to $16.50 from $13.50. The analyst notes several growth and margin headwinds that dragged Softchoice's results down in 2013 have started to abate, after the software firm delivered "a clean beat" in its fourth quarter earnings and revenues this week. Softchoice raised its dividend by two cents to nine cents, but that implies a payout ratio of only 17 per cent, and the company's balance sheet "remains pristine," with net cash of $68-million and no debt. The Globe's Ted Dixon reported in the Who's Buy & Selling column on March 24, 2012, that Softchoice insiders had started to take a shine to the company's shares. Softchoice was then trading at $13.59. The Globe's Fabrice Taylor recommended buying Softchoice on Oct. 24, 2012. Mr. Taylor noted the stock was changing hands at about seven times forecast cash earnings for 2013. Mr. Taylor said he believed the shares were poised to advance. The shares could then be had for $11.79.