DemandTec's Deal With Target Huge Positive; Deutsche Bank (DMAN)

DemandTec (NASDAQ:DMAN) reported non-GAAP EPS of ($0.09), below consensus of ($0.07). There was a two cent allowance for collects from a customer who is apparently not paying for one model.

DemandTec reinvested revenue heavily in R&D while competitors hoarded cash. This has paid off as the company has developed a strong pipeline and 100% renewal rate among customers.

Deutsche Bank analysts Tom Ernst and Nandan Amladi said, "The incremental multi-year 8-figure (annually) deal with Target pushes DMAN into a bigger league among software vendors and we believe it will increase both its visibility and appeal among the top 100 global retailers."

DemandTec is currently rated Buy by Deutsche Bank, with a price target of $9.50. It is currently trading at $6.66.