Baltimore-based Legg Mason Wood Walker Inc. [http://www.leggmason.com], the principal securities brokerage subsidiary of Legg Mason Inc., has announced that it will begin coverage of the enterprise software industry. Its coverage kicks off with an in-depth research report by Christopher S. Desautelle titled “Enterprise Software: Facilitating the Evolution Toward Mission-Critical Webs.”
The report “analyzes the entire spectrum of the enterprise software industry, from operating systems through enterprise resource planning packaged applications,” according to Legg Mason.
The industry report will provide in-depth descriptions and statistical analysis of the various segments of the enterprise software industry. A companion report that specifically covers the supply chain management software market is also available. Individual reports on Buy and Outperform recommendations are also available, and include a discussion of the rationale for, and risks of, investing in these companies’ stocks.
The Desautelle report addresses key issues in the industry, highlights emerging high growth sectors, and provides some of the key metrics investors should use when evaluating enterprise software investment opportunities. In particular, the report highlights the three fastest-growing enterprise software markets: supply chain planning and execution software, enabling software called middleware, and technology assisted selling software, called customer relationship management software.
In Legg Mason’s estimation, “all three are benefiting from the emergence of the Internet as a communications-enabling platform for mission-critical enterprise applications.” Legg Mason also initiated coverage of three additional enterprise software companies:
– Manugistics (Nasdaq: MANU) — Located in Rockville, Md., Manugistics is the second-largest provider of supply chain planning and execution software. Manugistics was given an investment rating of Outperform and a risk rating of Above-Average, with a 12-18 month target price of $23 per share.
– I2 Technologies Inc. (Nasdaq: ITWO) — I2, located in Irving, Texas, is the largest independent supply chain planning and execution software provider. I2 was given an investment rating of Outperform and a risk rating of Above-Average, with a 12-18 month target price of $24 per share.
– PeopleSoft Inc. (Nasdaq: PSFT) — PeopleSoft, located in Pleasanton, Calif., is a major vendor of enterprise resource planning software. In addition, PSFT has moved aggressively into the supply chain planning and execution market in recent years. PeopleSoft has been given an investment rating of Market Perform, and an above-average risk rating.
These three companies are all known for their supply chain management software. Legg Mason will also shortly issue a report on SFA giant Software AG Americas (NYSE: AGS) and Deltek Systems Inc. (Nasdaq: DLTK), a McLean, Va., provider of enterprise software products for project-oriented businesses.
Legg Mason Wood Walker Inc. has approximately 1,070 financial advisors in 110 offices in America, plus affiliated offices in San Francisco, London and Geneva.
