Auriga Reiterates a 'Buy' on eResearch Technology (ERT); A Modest Guide-Down but Year looks Intact
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Price: $7.98 --0%
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 10
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 10
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Auriga reiterates a 'Buy' on eResearch Technology (NASDAQ: ERT), price target lowered $1 to $9.
Auriga analyst says, "We are reiterating our rating on ERT following Q2 results in which EPS and revenue missed our estimates, while reducing our 12-month price target to $9. Importantly, the top line miss was due to the slippage of approximately $1.5 million in studies that have commenced and are expected to be recognized in Q3. The EPS miss was due primarily to the revenue miss as well as investments in their German operations (aka. the RS business) which hampered gross profit, most of which is not expected to recur. We reiterate our view that ERT is in fact a growth story (albeit single digits) trading at a value multiple. If the shares demonstrate weakness on Tuesday due to the miss and modest guide-down, we would be aggressive buyers as we find the stock a compelling buy despite our price target reduction (40% upside from yesterday's close)."
For more ratings news on eResearch Technology click here and for the rating history of eResearch Technology click here.
Shares of eResearch Technology closed at $6.43 yesterday.
Auriga analyst says, "We are reiterating our rating on ERT following Q2 results in which EPS and revenue missed our estimates, while reducing our 12-month price target to $9. Importantly, the top line miss was due to the slippage of approximately $1.5 million in studies that have commenced and are expected to be recognized in Q3. The EPS miss was due primarily to the revenue miss as well as investments in their German operations (aka. the RS business) which hampered gross profit, most of which is not expected to recur. We reiterate our view that ERT is in fact a growth story (albeit single digits) trading at a value multiple. If the shares demonstrate weakness on Tuesday due to the miss and modest guide-down, we would be aggressive buyers as we find the stock a compelling buy despite our price target reduction (40% upside from yesterday's close)."
For more ratings news on eResearch Technology click here and for the rating history of eResearch Technology click here.
Shares of eResearch Technology closed at $6.43 yesterday.
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