Ahead Of The Bell: Analyst Sees Growth At NetSuite

NEW YORK (AP) — NetSuite Inc.'s revenue growth should bottom out in the third quarter and continue expanding through next year, a Credit Suisse analyst said Monday, upgrading shares to "Outperform" from "Neutral."

In a note to investors, analyst Bryan McGrath said his short-term concerns, including a slowdown in revenue growth and new billings due to the recession, appear to be waning.

He raised his price target for the San Mateo, Calif. company, which makes business management software for small and medium-size companies, to $18 from $14.

"We now think that the company has worked through most of these issues and that its operating metrics and year over year comparisons will begin to improve," McGrath said.

He acknowledged the stock is "expensive," but added, "Given our view that the business outlook is set to improve, we believe now is the time to begin accumulating shares."