Seligman Technology Group analyst Reema Shah is a fan of BMC. "It is still being valued as a value stock" because of "skepticism around margin expansion," Shah says. But she expects margins to improve to at least 38% in 2010 from around 33% in June 2009. Most important, BMC stands to win big if Cisco's server products take off; it will get paid licensing fees for BMC Blade-Logic software used in the servers, she explains. "It could be a big opportunity next year," Shah says. Her price target is in the high 40's based on her fiscal year 2010 earnings estimate of $2.70 a share. Shares traded last week around 37.

Even old dogs like BMC Software (BMC) are having their day in the sun.

Also on Cramer's list of the big fund managers' buying list are Corning (GLW), Marvel Technologies (MRVL), Apple (AAPL), BMC (BMC), Nvidia (NVDA), IBM (IBM), Broadcom (BRCM), Google (GOOG), Yahoo (YHOO) and EMC (EMC).

J.P.Morgan said it is upgrading BMC Software (BMC) to Neutral from Underweight based on value of maintenance revenue stream. Note mainframe database tools business is experiencing stable pricing environment.

Goldman Sachs said it is downgrading BMC Software (BMC) to Neutral from Buy based on preference for value/turnaround plays in the current market environment. BMC's BladeLogic acquisition delays margin expansion and leaves less cash for share buybacks. Target cut to $37 from $41.

The stocks with the highest risk, Pritchard says, are Citrix Systems (ticker: CTXS), an application-delivery software outfit, and Blade-Logic (BLOG), a maker of data-center software. And, owing to the financial-services industry's turmoil, Pritchard sees business-software makers Computer Associates (CA) and BMC Software (BMC) as somewhat vulnerable.

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Credit Suisse said it is upgrading BMC Software (BMC) to Outperform from Hold based on improving mainframe software pricing environment and the possibility of expanding operating margins. Raised target price to $41 from $34.

"Pro forma operating margins, which better reflect cash flow, have jumped from single digits to about 24% in the past few years, she notes. Shah thinks they can hit the low 30s."

BMC Software (BMC) was downgraded from Peer Perform to Underperform, Bear Stearns said. Valuation call. Core sales could also be weak, following IBM's guidance last night.