Barclays Upgrades Corporate Executive Board (CEB) to Equalweight

Barclays upgraded Corporate Executive Board (NYSE: CEB) from Underweight to Equalweight with a price target of $75.00 (from $50.00).

Following Gartner announcement of $2.6B buyout of CEB Inc., Barclays analyst Manav Patnaik comments "Core CEB CV declined again in 3Q (-1.1% y/y CC vs. -0.4% in 2Q) marking the first time since the recession that CV failed to grow in two consecutive quarters, as CEB “delivered less progress in restoring large corporate growth in North America.” Lower bookings growth resulted in revenue of $230M (-2%/-1% below our/Street estimates), while core CEB CC Adj. EBITDA margin declined ~300bps y/y (25.6% CC vs. 26.3% reported). Amid a backdrop of internal sales execution issues and tighter budgets at large NA clients, CEB lowered its FY16 revenue/Adj. EBITDA guidance by ~2%/5% to reflect a more ‘conservative posture.’"

For an analyst ratings summary and ratings history on Corporate Executive Board click here. For more ratings news on Corporate Executive Board click here.

Shares of Corporate Executive Board closed at $75.95 Friday.

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