MARKET TALK: Citigroup Nudges Down Micro Focus Price Target

28th Jun 2010 10:32

0932 GMT [Dow Jones] Citigroup nudges down Micro Focus International (MCRO.LN) price target to 600p from 650p. Citi tempers its top-of-consensus forecasts, which were based on the brokerage's more bullish stance on growth in the testing business. Cuts '10 EPS forecast to 54.5p from 57.4p, 11 to 60.6p from 71.7p and '12 to 68.9p from 79.5p. But is still bullish for migration projects and strong growth in larger value transactions in the core business. Meanwhile, notes the share price drop after the chief financial officer's resignation. Thinks this is an over-reaction. Suggests investors should buy the dip. Keeps at buy. Shares -3.7% at 420.3p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 28, 2010 05:32 ET (09:32 GMT)