Gabellie Comments on Cambium Learning Group (ABCD), Price Target Calls For 163% Upside
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Price: $14.48 --0%
Rating Summary:
2 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Gabelli currently has a Buy rating on shares of Cambium Learning Group (NASDAQ: ABCD) with a $7 price target following a meeting with the company's CFO Brad Almond.
The company controls roughly 5 percent of the $4 billion plus grade school market for educational materials as its products are used by around 4 million students. Out of a population of 56 million students, nearly 70 percent of them between grades 4 and 8 are not proficient readers and 60-70% of the students lack mathematics skills.
With about 70 percent of students lacking reading or mathematical skills, it makes sense that that company's second quarter order volumes were up 15 percent.
An analyst at Gabelli comments, "We calculate the company’s 2012 private market value to be $7 per share based on an 8x multiple of EBITDA, increasing to $9 per share the following year. In a fragmented supplemental materials market, we think that Cambium could be an attractive acquisition candidate, particularly for a larger basal textbook publisher."
For more ratings news on Cambium Learning Group click here and for the rating history of Cambium Learning Group click here.
Shares of Cambium Learning Group closed at $3.02 yesterday.
The company controls roughly 5 percent of the $4 billion plus grade school market for educational materials as its products are used by around 4 million students. Out of a population of 56 million students, nearly 70 percent of them between grades 4 and 8 are not proficient readers and 60-70% of the students lack mathematics skills.
With about 70 percent of students lacking reading or mathematical skills, it makes sense that that company's second quarter order volumes were up 15 percent.
An analyst at Gabelli comments, "We calculate the company’s 2012 private market value to be $7 per share based on an 8x multiple of EBITDA, increasing to $9 per share the following year. In a fragmented supplemental materials market, we think that Cambium could be an attractive acquisition candidate, particularly for a larger basal textbook publisher."
For more ratings news on Cambium Learning Group click here and for the rating history of Cambium Learning Group click here.
Shares of Cambium Learning Group closed at $3.02 yesterday.
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