Auriga Cuts Estimates on eResearch Technology (ERES), Maintains But Rating & $10 PT

FREE Breaking News Alerts from StreetInsider.com!

ERES Hot Sheet

Rating Summary:
2 Buy, 1 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
Up: 19 | Down: 18 | New: 27

Auriga is reiterating their Buy rating and $10 price target on shares of eResearch Technology (NASDAQ: ERES), but feels that the stocks price is subject to increase with strong 4Q10 earnings that are planned to be released on March 1, after the close. The firm reports that the company looks very strong in the long run as their diversification strategy should bode well. Auriga believes that ERES will release their 2011 guidance mostly conservative with high R&D costs and lower margin forecasts. As a result the firm is lowering their FY11 EPS estimate by $0.05 to $0.55 and their 1Q11 by $0.03.

Auriga comments that, "Nonetheless, we find ERES trading at a substantial discount to Contract Research Organization (CRO) comps, and find the risk/reward attractive at current levels."

For more ratings news on eResearch Technology click here and for the rating history of eResearch Technology click here.

Shares of eResearch Technology closed at $6.32 yesterday, with a 52 week range of $5.36-$8.95.

Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!