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Auriga Reiterates a 'Buy' on eResearch Technology (ERT); Growth at a Value Price

July 6, 2011 10:32 AM EDT Send to a Friend
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Price: $7.98 --0%

Rating Summary:
    1 Buy, 3 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 31 | Down: 9 | New: 29
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Auriga reiterates a 'Buy' on eResearch Technology (NASDAQ: ERT), PT $10.

Auriga analyst says, "Our checks from the recent Drug Information Association (DIA) conference and meeting with management confirms our view that ERT is an attractive and modest (high single digit) growth story trading at a value multiple. With last summer's acquisition of Carefusion's (NYSE: CFN)(NotRated) Research Services division (RS), and recent traction with its ePRO offerings, the Company has wisely diversified its business lines beyond a pure cardiac safety testing provider. Our conversations with newly appointed CEO Jeff Litwin, MD, and CFO Keith Schneck, lead us to believe that performance in the back half of FY11 and FY12 will demonstrate a return to growth with margin expansion as the synergies of the merger take hold. We recommend buying the stock at current levels."

"Based on our new growth assumptions for ERT's business lines, we are increasing our FY12 EPS and revenue estimates very modestly, by $0.01 and $500,000, respectively."

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 $6.40 yesterday.




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