Piper Jaffray Maintains an 'Overweight' on Solera Holdings (SLH); Near-Term Outlook Healthy

October 23, 2009 7:21 AM EDT

Piper Jaffray maintains an Overweight rating on Solera Holdings (NYSE: SLH), raises price target from $32 to $35.

Piper analyst says, "Recent investor meetings with Solera reinforce our enthusiasm for this high-quality growth story. The combination of a compelling secular growth outlook, improving near-term momentum, and attractive financial dynamics make SLH a core holding for SMID-cap growth investors, even acknowledging the stock's recent strength...Near-term outlook healthy. Management expressed confidence that F4Q (June) likely represented the bottom of the claims cycle. We anticipate modestly improved organic revenue growth in F1Q, with potential upside to our $0.44 cash EPS estimate driven by both improved revenue trends and margin leverage...Long-term growth drivers suggest mid-teens (or better) sustainable growth...FX headwind becomes tailwind...Acquisitions are a source of growth upside. Acquisitions and dividends are expected to be the primary uses of free cash flow."

To see more analyst ratings on SLH Click Here.

Solera Holdings, Inc. provides software and services to the automobile insurance claims processing industry.

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