(Adds table with rating and price target changes)
Oct 2 (Reuters) - Goldman Sachs downgraded software makers NetSuite (N.N) and CommVault (CVLT.O), as it expects demand to slacken amid slowing U.S. economic conditions.
The brokerage also removed Citrix Systems (CTXS.O) from its conviction buy list. But Goldman maintained a “buy” rating on the stock, and said Citrix’s strength in virtualization, which allows a single computer to act like many “virtual” machines, make it an attractive potential takeover target for larger companies.
Goldman added Akamai Technologies Inc (AKAM.O), which provides services that help speed delivery of Web content, to its conviction sell list due to concerns about increasing competition and pricing pressure.
But the brokerage, which downgraded NetSuite (N.N) to “sell” from “neutral” and CommVault (CVLT.O) to “neutral” from “buy,” added Oracle Corp ORCL.O, the world’s third-largest software maker, to its conviction buy list.
Goldman cited Oracle’s broad mix of products and geographic exposure, among other factors, for the move.
The brokerage also upgraded Digital River DRIV.O, which manages online businesses, to “neutral” from “sell” on valuation.
The following table lists the rating and price target changes made by Goldman on various technology companies: Company Rating Price target (In $)
Current Prior Current Prior Akamai CL-Sell Neutral 14.50 21.50 BMC UC Neutral 32.00 34.00 CA UC Buy 28.00 31.00 Citrix Buy CL-Buy 33.00 36.00 CommVault Neutral Buy 14.00 17.00 Digital River Neutral Sell 34.00 37.00 Informatica UC Neutral 16.00 18.00 Kenexa UC Neutral 19.00 20.00 Limelight UC Neutral 2.75 3.00 McAfee UC Neutral UC 38.00 Microsoft UC Buy UC 34.00 NetSuite Sell Neutral 15.00 20.00 Nuance UC Neutral 15.00 16.00 Omniture UC Neutral 21.00 22.00 Oracle CL-Buy Buy 25.00 26.00 Parametric UC Neutral UC 18.00 Quest UC CL-Buy 17.00 18.00 RightNow UC Neutral UC 14.00 salesforce.com UC Sell 44.00 53.00 Secure Computing UC Neutral 5.75 5.00 SuccessFactors UC Neutral 12.00 13.00 Symantec UC Buy UC 23.00 Taleo UC Neutral 22.00 23.00 Verisign UC Neutral 24.00 34.00
UC - Unchanged
CL - Conviction List (Reporting by Sandhya Menon in Bangalore; Editing by Pratish Narayanan)