|RESEARCH ALERT-Credit Suisse cuts Sungard price target|
Reuters Company News
NEW YORK, July 3 (Reuters) - Credit Suisse First Boston on Wednesday cut its share-price target for Sungard Data Systems Inc. (NYSE:SDS), citing a weak outlook for the financial processing company's key investment services unit.
The firm cut its price target to $26 from $31. Sungard stock closed at $22.13 in Tuesday New York Stock Exchange trade. It has fallen 15 percent this week, as shares of rival software company Advent Software Inc. (NasdaqNM:ADVS) also slipped.
"While some industry indicators are picking up, there is not firm evidence of a turnaround," Credit Suisse said in a research note, "and we believe SunGard's main business, investment services, will continue to be weak."
The brokerage said there is strong interest in disaster recovery services, one of Sungard's businesses.
"However," Credit Suisse said, "the weak overall spending environment will make it challenging for the company to achieve double-digit growth in this segment."