Concur Tech Estimates Shaved

Concur Technologies, Inc. (CNQR) reported results for its fourth quarter of 2008 that exceeded our revenue and earnings estimates. There was very strong growth in higher-margined subscription revenues in the quarter.

The company already launched Concur Pay ahead of schedule and launched Concur Analytics some time back. Geographical expansion in Europe should also help to increase its visibility among customers. We have lowered our 2009 revenue projection to reflect an anticipated 25% year-over-year growth rate, and have also lowered our earnings estimate based on company guidance. We continue to rate CNQR a Hold with a target price of $30.75, and we believe there is little room for execution error for CNQR.

Concur trades at a significant P/E premium to the S&P 500, its industry mean and median, and even its well-established peers. Our target price of $30.75 is based on the company selling at close to 4.89x its Enterprise value to our 2009 sales estimate of $269 million.

Udayan Mukherjee contributed to the report.

Read the full analyst report on CNQR

Read the full analyst report on CNQR