|RESEARCH ALERT-CSFB starts Sungard Data Systems|
NEW YORK, June 12 (Reuters) - Credit Suisse First Boston started investment coverage of SunGard Data Systems (NYSE:SDS) on Tuesday with a buy rating.
In a research note, it set a 12-month share price target of $68 for the Wayne, Pa.-based company, which makes software systems for financial services.
SunGard shares closed on the New York Stock Exchange Monday at $57.97.
``SunGard's market share among the largest securities firms is probably unrivaled,'' CSFB said. ``Its products and services are utilized by 47 of the world's top 50 financial institutions, a key competitive advantage.''
It said SunGard was poised to be a primary beneficiary of new trade-settlement standards.
``Significant spending will be required to upgrade to the new trade-settlement standard, as many securities firms still rely on outdated and paper-based transaction systems.
``We believe SunGard is positioned to capture a significant portion of this spending,'' the note said.
CSFB said it estimated annual revenue growth of 17 percent and annual reported and cash earnings per share growth of 19 percent for SunGard.