Ahead Of The Bell: 'Hold' Reiterated On Novell

NEW YORK (AP) — A Jefferies analyst said Friday that revenue growth for Novell Inc. is "still elusive," and reiterated a "Hold" rating on the provider of computer networking software and technology services.

The company posted a profit for its fiscal third quarter Thursday, improving from a year-ago loss by cutting operating expenses by 20 percent. Revenue, however, fell 12 percent to $216.1 million.

Jefferies analyst Katherine Egbert said invoicing declines are a "thorn on the company's side, with each segment posting (year-over-year) invoicing declines."

"While valuation appears cheap, we remain on the sidelines," she wrote of the company's shares.

Egbert's target price for Novell's stock is in the range of $4 to $5.

Shares of Novell sank 11 cents, or 2.3 percent, to $4.60 in premarket activity.