October 2, 2008 / 4:32 PM / in 10 years

UPDATE 2-Goldman downgrades NetSuite, CommVault

 (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)   

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