As we have discussed in this BLOG the move to focus on Dividends vs Growth. CA starts to move that way.
Aivars Lode
JP Morgan North America Equity Research
________________________________________
CA Technologies: Notes from CA Analyst Day
Overweight
Friday we attended CA’s analyst day in NYC. It has been 15 months since CA’s last analyst day, and we appreciate the additional disclosure that management provided with regards to their business segments, plans to return value to shareholders, and an updated long-term financial outlook. While there was nothing that changes our positive view of the shares, we believe the following to be of interest to investors.
• Share repurchases & dividends. Management announced the long-term goal (for fiscal 2013-15) of allocating 40-50% of free cash flow for dividends and share repurchases. This represents a significant increase versus 28% for both FY11 and FY10 and 9% during FY09.
• FY12 guidance reaffirmed. CFO Rich Beckert reiterated the company’s FY12 guidance.
• Long-term goals revealed. We discuss this herein.
• We continue to rate CA Overweight with a $30 price target based on scenario 3 of our DCF.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment