JP Morgan lowers software makers’ ratings

By : |September 21, 2001 0

NEW YORK: JP Morgan Chase on Friday said it lowered its ratings for software
makers Siebel Systems Inc., PeopleSoft Inc. and Witness Systems Inc. to
"long-term buy" from "buy," as revenues in the sector slide.

Analyst James Pickrel said the downgrades are based on a two-to three-month
view, rather than the standard 12-month outlook. In a research note, Pickrel
said Siebel’s rating was lowered, based on assumption that 60 per cent of its
previous estimated license revenues were dependent on the close of September,
and of that at least 30 to 40 per cent will now slip, he said.

Shares of Siebel fell 81 cents, or six per cent, to $13.19 in Friday late
morning Nasdaq trade. PeopleSoft stock rose a penny to $20, while Witness
Systems slid 80 cents, or 11 per cent, to $6.60.

(C) Reuters Limited 2001.

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