Amdocs (DOX) Upgraded to “Buy” at Zacks Investment Research

Amdocs (NASDAQ:DOX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Friday, Zacks.com reports. The brokerage presently has a $68.00 target price on the technology company’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 13.36% from the company’s current price.

According to Zacks, “Amdocs’ fiscal second-quarter results benefited from new customer gains, penetration into new regions and a number of managed services awards. Digital modernization requirements of many of Amdocs’ communications, Pay TV and media customers are driving sales in North America. The company is also benefiting from partnerships with key companies. Moreover, it stands to greatly benefit from the impending merger between T-Mobile and Sprint, both of which are Amdocs’ customers. The company continues to aid digital, media and network transformations of its clients, which is improving its revenue growth rate. Its cloud native digital solutions platform DigitalONE is expected to be a key growth driver. However, persistent drag in the directory systems market remains a headwind. Shares have underperformed the industry year to date.”

A number of other brokerages have also recently commented on DOX. ValuEngine upgraded shares of Amdocs from a “sell” rating to a “hold” rating in a research report on Wednesday. BidaskClub upgraded shares of Amdocs from a “strong sell” rating to a “sell” rating in a research report on Wednesday, May 1st. Finally, JPMorgan Chase & Co. reduced their price target on shares of Amdocs from $70.00 to $67.00 and set a “neutral” rating on the stock in a research report on Wednesday. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and two have assigned a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average price target of $71.40.

Shares of NASDAQ DOX opened at $59.99 on Friday. Amdocs has a one year low of $52.60 and a one year high of $70.31. The company has a market cap of $8.43 billion, a price-to-earnings ratio of 16.04, a price-to-earnings-growth ratio of 1.81 and a beta of 0.52.

Amdocs (NASDAQ:DOX) last issued its quarterly earnings results on Tuesday, May 14th. The technology company reported $1.06 EPS for the quarter, beating analysts’ consensus estimates of $1.03 by $0.03. Amdocs had a net margin of 8.96% and a return on equity of 15.16%. The business had revenue of $1.02 billion for the quarter, compared to analysts’ expectations of $1.02 billion. During the same period last year, the business earned $0.95 earnings per share. The business’s quarterly revenue was up 2.8% on a year-over-year basis. On average, equities research analysts predict that Amdocs will post 3.92 EPS for the current fiscal year.

Several large investors have recently added to or reduced their stakes in DOX. Legal & General Group Plc boosted its stake in shares of Amdocs by 9.3% during the third quarter. Legal & General Group Plc now owns 749,829 shares of the technology company’s stock valued at $49,482,000 after purchasing an additional 63,620 shares during the period. Vanguard Group Inc. boosted its stake in shares of Amdocs by 12.9% during the third quarter. Vanguard Group Inc. now owns 906,097 shares of the technology company’s stock valued at $59,784,000 after purchasing an additional 103,299 shares during the period. Vanguard Group Inc boosted its stake in shares of Amdocs by 12.9% during the third quarter. Vanguard Group Inc now owns 906,097 shares of the technology company’s stock valued at $59,784,000 after purchasing an additional 103,299 shares during the period. BTIM Corp. boosted its stake in shares of Amdocs by 8.3% during the fourth quarter. BTIM Corp. now owns 223,891 shares of the technology company’s stock valued at $13,115,000 after purchasing an additional 17,172 shares during the period. Finally, Bank of Montreal Can boosted its stake in shares of Amdocs by 7.7% during the fourth quarter. Bank of Montreal Can now owns 1,104,692 shares of the technology company’s stock valued at $64,714,000 after purchasing an additional 79,171 shares during the period. 93.02% of the stock is owned by hedge funds and other institutional investors.

Amdocs Company Profile

Amdocs Limited, through its subsidiaries, provides software and services to the communications, pay TV, entertainment, and media industry service providers worldwide. The company offers amdocsONE a line of services designed for various stages of a service provider's lifecycle, including planning, delivery, implementation, and ongoing support, as well as consumer experience and monetization, media and digital, enterprise and connected society, service-driven network, and services and agile operation solutions.

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