JDA Software Inc has seen its stock bounce back dramatically this week after initial fears that PeopleSoft Inc would be crowding its market space faded away, added to which, Morgan Stanley Dean Witter initiated coverage of JDA with a Strong Buy rating. JDA’s shares plummeted by 7% at the end of last week after the news that both it and PeopleSoft had made $50m acquisitions in the retailing software sector, JDA’s only vertical market. And despite JDA’s readily apparent state of good health, PeopleSoft’s aggressive reputation appeared to have preceded it. But software analyst Chuck Phillips, in his inaugural briefing note, reminded investors that PeopleSoft’s purchase of Intrepid Systems Inc hasn’t changed the competitive landscape one bit, as the two were already jointly marketing their offerings. With over 300 retail customers, JDA has by far the largest share of this target market (retailing), but the market as a whole is significantly under penetrated, said Phillips. JDA’s shares closed up 9% at $45.5. JDA’s chief financial officer, Kris Magnuson, said that any worries about PeopleSoft troubling JDA’s dominant position in this sector were, ridiculous.
