Thursday, May 8, 2014

Textura Corp's (TXTR) Outperform Rating Reiterated at Barrington Research

Barrington Research reiterated an Outperform rating on Textura Corp (NYSE: TXTR) with a price target of $30.
May 8, 2014 1:59 PM EDT, article from

Analyst Jeff Houston said, "Management lowered calendar 2014 expectations due to delays both in signing new general contractors (GCs) and existing clients’ implementations. It attributed the deferment mostly to GCs investigating the rogue short report as well as the severe cold weather to a lesser extent. While these issues existed in January and February, business returned to normal in March and April. As for Q1/14, revenue was slightly below consensus (albeit near the high end of guidance) and adjusted loss per share was above expectations."

"Textura went public in June 2013 at $15 per share and priced a secondary offering in September at $38. Its stock peaked at $47.63 in October and the stock is down 6% today, to $15.00. Also presenting some headwind for the stock, it carries a high short interest (41.8% of float as of 4/15/14) and there has been a general compression of SaaS valuations. Still, we maintain our OUTPERFORM investment rating and $30 price target. Given our forecast for a significant profitability ramp and continued 50% organic growth in 2015, we think the stock should trade at a premium to the overall SaaS group. Its disruptive technology is modernizing the large and underpenetrated commercial construction industry," he added.


Textura Corp
-1.63 (-10.15%)

Real-time:   2:55PM EDT, May 8, 2014

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