Epicor Software downgraded to "hold" - update

12/08/05 - KeyBanc Capital Markets

NEW YORK, December 8 (newratings.com) - Analysts at KeyBanc Capital Markets downgrade Epicor Software Corporation (EPIC) from "buy" to "hold," while raising their estimates for the company.

In a research note published yesterday, the analysts mention that the execution risk at Epicor Software has risen, following the recent acquisition of CRS Retail Systems for $121 million in cash. Epicor Software expects the acquisition to be accretive to its earnings in 2006 and generate $70 million during the following year. The company has raised its pro forma EPS guidance for 2006 from $0.75 to $0.77-$0.79. The pro forma EPS estimate for 2006 has been raised from $0.76 to $0.79.