CA Stock Slumped Today on Ratings Downgrade
NEW YORK (TheStreet) -- Shares of CA (CA) - Get Report closed lower by 0.32% to $34.23 in Thursday's trading session after Mizuho downgraded the stock to "neutral" from "buy" in a note released earlier today.
The firm maintained its price target of $34 on shares of the New York City-based software solutions provider.
Mizuho sees downside risk to CA's fiscal 2018 estimates, given declines in mainframe and core enterprise solutions, Barron's reports.
"Although we acknowledge growth from areas such as Rally/Xceedium, in our view, significant step up in overall momentum is unlikely given relatively small mix of these products," the firm added.
Mizuho estimates about $100 million risk to consensus revenues of $4.14 billion for 2018 and cut its per-share earnings projections for the year as well.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
CA's strengths such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
You can view the full analysis from the report here: CA
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.