Wells Fargo Starts Solera Holdings (SLH) at Market Perform; Strong Positioning Within Automobile Insurance Claims

Wells Fargo initiates coverage on Solera Holdings (NYSE: SLH) with a Market Perform. Valuation range $54-57.

Wells analyst says, "Solera’s strong positioning within the automobile insurance claims processing industry coupled with improving end-market fundamentals, continued cross sell opportunities in existing and new geographies, and the secular trend of a growing global middle should allow the company to return to high single digit organic top-line growth and continued margin expansion. We expect the company to also use its strong balance sheet and cash flow generation to return value to shareholder. We believe valuation is fair at 19.4x our 2012 adjusted earnings est. vs. five year historic average of 18.7x as earnings growth is expected to be lower than recent results due to decreased margin expansion."

For more ratings news on Solera Holdings click here and for the rating history of Solera Holdings click here.

Shares of Solera Holdings closed at $50.94 yesterday.

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