The firm initiated analyst coverage with a “neutral” rating of the Redmond provider of corporate expense software and services.
Concur’s stock has been on a tear, up about 24 percent over the last year. The research note suggests it could have more potential, calling it the “only ‘pure-play’ OnDemand T&E company.”
“In our opinion, Concur could have higher future growth than management
estimates, if the company were to ramp up investments in operating resources
such as sales and marketing. Although the timing is uncertain, on the flipside,
investors will have to weigh revenue acceleration versus margin compression.”
The coverage didn’t do much for the stock today. CNQR closed down 77 cents, or 5 percent, at $4.79.