J.P. Morgan Remains Overweight on Ariba

J.P. Morgan Chase & Co. is out with a research report on Ariba, Inc (NASDAQ: ARBA) and it remains Overweight with a $33 price target on shares.

In a note to clients, J.P. Morgan Chase & Co. writes, "Ariba reported their FY4Q11 exceeding our estimates, backlog, and deal metrics pointing to continued healthy growth in both their organic and acquired businesses. 2012 revenue guidance was also ahead of our expectations that included the acquisition of b-process. However, we expect to see some near term pressure as consensus estimates on 2012 earnings was not fully adjusted after the company gave initial 2012 guidance at their analyst day in early September or from the $0.03 dilution of b-process on October 18. So 2012 guidance was below the street abeit apples to oranges comparison."

Shares of ARBA gained 60 cents yesterday to close at $33.15.