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June 27 (Reuters) - Jefferies & Co upgraded Novell Inc NOVL.O to “buy,” saying the business software maker’s installed base in government and educational institutions, and a large maintenance stream makes it less vulnerable to a drop in spending.
The brokerage also said the company’s shares are cheap, margins expanding and there might be a new partnership with Microsoft Corp (MSFT.O) on application virtualization product on tap.
The brokerage, which has a price target of $7.50 on the stock, also expects he company might to buy back stock slowly.
It previously had a “hold” rating on the stock, which was up more than 1 percent at $6 in early trade on Nasdaq. (Reporting by Adheesha Sarkar in Bangalore; Editing by Anil D’Silva)