CA Inc stock is set to bounce: Barron

NEW YORK, USA: Stock in CA Inc, the technology services company, is set set to bounce as it experiences a growth spurt, according to financial weekly Barron's.

An upbeat response to CA's earnings report last week hinted that CA was getting some traction in its efforts to exploit its leadership in mainframe, security and identity software to boost its growth in faster growing parts of corporate IT, Barron's said in it Oct. 25 edition.

CA is currently trading at less than 12 times expected fiscal 2011 earnings, a 20 percent discount to broader software sector and to peer BMC Software.

As the company's growth initiatives become clearer, the shares "most likely will be revalued and trade back up into the high-$20s at least," Barron's said