Micros Systems shares jump on strong Q4, upbeat outlook

Fri Aug 27, 2010 11:40am EDT

Aug 27 (Reuters) - Shares of Micros Systems Inc (MCRS.O) jumped 11 percent to a lifetime high on Friday, a day after the company posted strong quarterly results and forecast fiscal 2011 revenue ahead of Wall Street view.

At least four analysts raised their price targets on shares of the company, which provides information systems to the hospitality industry.

Micros Systems' view seems very achievable in a moderately improving economic backdrop and it has the potential to sustain mid- to high-teens earnings-per-share growth, Jefferies & Co said in a note to clients.

The brokerage raised its price target on Micros Systems' shares to $42 from $38 and kept its "buy" rating.

The company's continued effort at updating its suite of products positions it very well for a rebound in end markets, said RBC Capital Market analyst Daniel Perlin, who raised his target price on Micros Systems' shares to $40 from $37.

For fiscal 2011, the company forecast revenue of $1-1.01 billion. Analysts were looking for revenue of $999.7 million, according to Thomson Reuters I/B/E/S. [ID:nSGE67P0M5]

Micros Systems, whose rivals include NCR Corp (NCR.N) and Radiant Systems RADS.O, also serves specialty retail industries including retailers of clothing, shoes, food, hardware and jewellery.

Shares of Columbia, Maryland-based Micros Systems have gained more than 50 percent in value since its October year-low of $25.68, helped by a cyclical recovery within its end markets.

They were up 10 percent at $38.96 in morning trade on Nasdaq, after touching a high of $39.46 earlier in the session. About 660,000 shares had exchanged hands by late morning, more than twice the average 10-day trading volume.

(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Anne Pallivathuckal)

((saqib.ahmed@thomsonreuters.com; within US +1 646 223 8780; outside U.S +91 80 4135 5800; Reuters Messaging saqib.ahmed.reuters.com@reuters.net)) Keywords: MICROSSYSTEMS/SHARES

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