Needham & Company Downgrades E2open (EOPN) to Hold

Needham & Company downgraded E2open (NASDAQ: EOPN) from Buy to Hold on non-renewals.

Analyst Michael Huang said, "We are lowering our rating to Hold given disappointing customer non-renewals, a delayed customer implementation, and the loss of the head of sales against a backdrop of reduced SaaS investor risk appetites. While we acknowledge the strong/impressive customer wins (including P&G and HTC), the magnitude of downside guidance could feed further investor concerns around the underlying health of trends (and the predictability of the model). We still believe in the stickiness/strategic nature of the value proposition and the longer-term opportunity, but we'd prefer to see more tangible evidence that trends are stable prior to becoming more constructive on shares."

The firm lowered 2015 revenue estimate to $83.3MM (from $89.3MM) and raised EPS estimate to a loss of $0.50 (from a loss of $0.54).

For an analyst ratings summary and ratings history on E2open click here. For more ratings news on E2open click here.

Shares of E2open closed at $15.61 yesterday.

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