BMC Software (NASDAQ:BMC) Cloud Momentum Accelerating

Shares of BMC Software (NASDAQ:BMC) are expected to trend higher, says Barclays (NYSE:BCS), citing accelerated cloud momentum and long-term growth prospects.

Barclays said, "With BMC beginning to show increasing cloud management momentum (ESM license bookings +35% fiscal year to date, expected mid-teens long term) and with the company raising its long-term growth outlook above FY12 consensus, we believe shares can continue to trend higher as investors begin to appreciate the growth strategy. As stock remains under-owned, we believe multiple has room to move higher. We raise our FY12 EPS estimates to $3.30 from $3.25 on 6% revenue growth, up from prior estimate of 5.1%."

Barclays maintains an "Overweight" on BMC Software, which closed Wednesday at $47.87, up $0.29, or 0.61 percent. They raised their price target on BMC from $50 to $54.