SDL "buy," target price reduced

02/12/08 - Kaupthing Bank

LONDON, February 12 (newratings.com) - Analysts at Kaupthing Bank reiterate their "buy" rating on SDL PLC (SDL-GBX). The target price has been reduced from 420p to 340p.

In a research note published this morning, the analysts mention that the company has announced its plans to acquire Idiom, one of its key rivals in the enterprise technology space, for around $27 million. The acquisition presents a sound consolidation opportunity to SDL and is expected to boost the company’s enterprise software offerings going forward, the analysts say. The downward revision in the target price reflects the significant de-rating in the sector, Kaupthing Bank adds.