Cantor Fitzgerald Upgrades Amdocs Ltd (DOX) to Buy; Raises PT & Estimates After Stronger-Than-Expected Q4

November 5, 2009 7:28 AM EST

Cantor Fitzgerald upgrades Amdocs Ltd (NYSE: DOX) from Hold to Buy. Price target increased from $25 to $33.

Cantor analyst says, "Amdocs reported stronger-than-expected 4Q:09 results after the market closed yesterday and the company provided better-than-expected 1Q:10 guidance. As such, we are gaining confidence that the economy is turning and that carriers are beginning to invest in their networks again. We expect that Amdocs will benefit from such activity. Our price target is based on 12x our CY:10 operating EPS estimate of $2.24 plus the $6.08 in net cash per share we project for CY:09."

"For CY:09, we raised our revenue estimate from $2,752.3 million to $2,824.3 million and we increased our pro forma EPS estimate from $2.01 to $2.13. For CY:10, we are increasing our revenue estimate from $2,734.7 million to $2,964.3 million and we are increasing our pro forma EPS estimate from $1.97 to $2.28. We also introduce our CY:11 revenue estimate of $3,221.6 million and pro forma EPS of $2.51."

"We believe that the risks associated with an investment in Amdocs include the integration of multiple acquisitions, a high level of customer concentration, and geopolitical risk."

To see more analyst ratings on DOX Click Here.

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