FBR Capital Maintains an 'Outperform' on Cbeyond (CBEY); Solid 1Q11 Results, FY11 Guidance Reiterated
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Price: $9.99 --0%
Rating Summary:
1 Buy, 9 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 9 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains an 'Outperform' on Cbeyond (NASDAQ: CBEY), PT $17.
FBR analyst says, "CBEY is a managed services company that is seeing moderating core revenue growth but is achieving the combination of core ARPU stability on the horizon and better-than-expected revenue growth from the recently acquired cloud services division. We forecast a major lift in EBITDA and FCF in 2012 resulting from a shift to a lower cost structure following an investment phase in FY11. We recommend buying CBEY shares aggressively at these levels and expect investors to be rewarded with multiple expansion to a level in line with its peers as the improved trajectory of the managed services–based business model on a lower cost structure materializes in 2012."
"We are slightly raising our FY11 revenue estimate from $486.6M to $488.5M; we are also raising our FY11 adjusted EBITDA estimate from $80.6M to $84.3M. Our FY12 estimates for revenue, adjusted EBITDA, and FCF are $521.1M, $105.9M and $42.7M, respectively."
For more ratings news on Cbeyond click here and for the rating history of Cbeyond click here.
Shares of Cbeyond closed at $12.99 yesterday.
FBR analyst says, "CBEY is a managed services company that is seeing moderating core revenue growth but is achieving the combination of core ARPU stability on the horizon and better-than-expected revenue growth from the recently acquired cloud services division. We forecast a major lift in EBITDA and FCF in 2012 resulting from a shift to a lower cost structure following an investment phase in FY11. We recommend buying CBEY shares aggressively at these levels and expect investors to be rewarded with multiple expansion to a level in line with its peers as the improved trajectory of the managed services–based business model on a lower cost structure materializes in 2012."
"We are slightly raising our FY11 revenue estimate from $486.6M to $488.5M; we are also raising our FY11 adjusted EBITDA estimate from $80.6M to $84.3M. Our FY12 estimates for revenue, adjusted EBITDA, and FCF are $521.1M, $105.9M and $42.7M, respectively."
For more ratings news on Cbeyond click here and for the rating history of Cbeyond click here.
Shares of Cbeyond closed at $12.99 yesterday.
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