Novell "underperform," target price raised

08/30/07 - Credit Suisse

NEW YORK, August 30 (newratings.com) – Analysts at Credit Suisse reiterate their "underperform" rating on Novell Inc (NOVL), while raising their estimates for the company. The target price has been raised from $6 to $7.

In a research note published this morning, the analysts mention that the company has reported its 3Q revenues and non-GAAP EPS ahead of the estimates. The earnings upside was driven by growth in professional services fees and improved cost controls, the analysts say. Novell has indicated that it expects to beat its FY07 operating income target of $0-$10 million. The company’s overall business seems to have stabilized, Credit Suisse adds.