CA (NASDAQ:CA) Hammered on Weak Cash Flow, Margins

Shares of CA Technologies (NASDAQ:CA) have been taking a beating today, as its q/q op margin is lower, as well as its estimated cash flow for the third quarter.

Also of note is a 1 percent increase in the backlog of the software company.

Even so, Jefferies finds them an interesting story, as the downside looks limited to them, and strong acquisitions could give them a revenue boost in the short term.

Jefferies lowered their full year 2011 and full year 2012 EPS estimates on CA from $1.97 and $2.04 to $1.95 and $2.16.

Interestingly, Jefferies maintains a "Buy" rating on CA, which was trading at $23.23, losing $2.13, or 8.40 percent, as of 2:22 PM EST. They also boosted their price target on CA from $24 to $28.