Story updated at 10 a.m. to reflect market activity.
CA Technologies fell -2% to $28.81 in morning trading.
The firm reiterated its "equal weight" rating and $36 price target for the company. Analysts Raimo Lenschow and Saket Klia cite CA Technologies' agreement with Marlin Equity Partners to divest its arcserve data protection business for an undisclosed sum.
"The divestiture should not come as a surprise given that the company completed a similar transaction with Embarcadero Technologies for its data modeling business last quarter," the analysts wrote. "We also note that management has repeatedly stated over the past year that CA needs to trim its product portfolio to better focus on more strategic business units like IT Business Management, DevOps and Security."
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Separately, TheStreet Ratings team rates CA INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CA INC (CA) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."