Credit Suisse downgraded BEAS from "outperform" to "neutral" on Tuesday, May 15, 2007. "We are lowering our rating on shares of BEA Systems to Neutral from Outperform and maintaining our $14 price target. We think the recent market speculation about an HP takeover is more wishful thinking than reality. In our opinion, the bounce in the stock price back to the $12 level adequately reflects the value of the business on a standalone basis. We are lowering our F2008 revenue estimate to $1.49B from $1.53B and our EPS estimate to $0.59 from $0.62.

BEA may ultimately end up being acquired, however, we think that path will at the very least take some time and won't be as easy one might hope. While we believe BEA Systems ought to be part of another company, we aren't sure the recent disappointing Q1 is enough to push the management team and board to engage in any serious discussions. Our sense is that it will take a concerted effort by shareholders to move any process forward."