As noted earlier, Needham analyst Ryan MacDonald downgraded Model N to Hold from Buy, saying its "elongated transition of existing customers to SaaS" is having a negative impact on its financial outlook. The analyst notes that he initially estimated the company's recurring revenue growth to reach as high as 15% based on its Life Science customer transitions and net new customer wins, but now sees that growth rate in the mid-to-high single digit rate amid the challenges of ramping deal structure adoption and headwind from the adoption of ASC606. As such, MacDonald believes that Model N shares are "accurately valued at current levels."