Novell "underperform"

06/01/07 - Credit Suisse

NEW YORK, June 1 (newratings.com) - Analyst J Maynard of Credit Suisse reiterates his "underperform" rating on Novell Inc (NOVL). The target price is set to $6.

In a research note published yesterday, the analyst mentions that the company’s 2Q results did not indicate any visible signs of substantial progress. The forthcoming release of GPLv3 represents a risk to Novell’s most significant business, the analyst says. In the absence of sustainable cash flows, the probability of the company being acquired by a private equity investor is quite low, Credit Suisse believes.