Novell "neutral"

09/03/07 - Davenport & Co.

NEW YORK, September 3 (newratings.com) - Analyst F Drake Johnstone of Davenport & Company maintains his "neutral" rating on Novell Corporation (NOVL).

In a research note dated August 30 and published on August 31, the analyst mentions that the company has posted its 3Q results short of expectations. Novell’s shift to an indirect sales model in the US from a direct sales one should result in improved growth in the company’s identity and access management business, the analyst adds. The GAAP EPS estimates for FY07 and FY08 have been reduced to -$0.06 and $0.18, respectively.