Barclays on Information Services: DNB Still Top Pick in 'Credit Bureau' World
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Price: $9.15 --0%
Rating Summary:
7 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
7 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays on Information Services: DNB Still Top Pick in 'Credit Bureau' World
Analyst, Manav Patnaik, said, "Within our 'credit bureau' world we continue to favor Dun & Bradstreet (NYSE: DNB) (OW, $82 price target - raised from $80) over Equifax (NYSE: EFX) (EW, $37 price target - up from $33) and Fair Isaac (Nasdaq: FICO) (EW, $37 price target - up from $35). Additionally, for those seeking exposure to the consumer credit world, EFX is the preferable option for long-term holders, while FICO could present some material medium-term upside for those who expect credit card originations (and to some extent mortgage originations) will begin to increase again."
"On DNB: We remain bullish on the prospects of an operational turnaround, with an economic recovery viewed as incremental to the equation. At current levels, for a company that can generate $300M of FCF a year (without benefits from the technology investments or tax benefits from Ireland), the market appears to be pricing in little to no growth. We expect management to deliver on its internal goals and show top-line acceleration going into 2012 (driven in the near term by its D&B360 initiatives). We encourage investors to accumulate long term positions ahead of the forecast top-line pick-up, as well as bottom line margin expansion, driven by the inherent leverage in the business model as well as the technology investments."
Barclays lowers DNB's FY11 EPS estimate from $6.15 to $5.89 and FY12 from $6.45 to $6.26.
Barclays cuts EFX's FY11 EPS estimate from $2.52 to $2.06 and FY12 from $2.60 to $2.20.
Analyst, Manav Patnaik, said, "Within our 'credit bureau' world we continue to favor Dun & Bradstreet (NYSE: DNB) (OW, $82 price target - raised from $80) over Equifax (NYSE: EFX) (EW, $37 price target - up from $33) and Fair Isaac (Nasdaq: FICO) (EW, $37 price target - up from $35). Additionally, for those seeking exposure to the consumer credit world, EFX is the preferable option for long-term holders, while FICO could present some material medium-term upside for those who expect credit card originations (and to some extent mortgage originations) will begin to increase again."
"On DNB: We remain bullish on the prospects of an operational turnaround, with an economic recovery viewed as incremental to the equation. At current levels, for a company that can generate $300M of FCF a year (without benefits from the technology investments or tax benefits from Ireland), the market appears to be pricing in little to no growth. We expect management to deliver on its internal goals and show top-line acceleration going into 2012 (driven in the near term by its D&B360 initiatives). We encourage investors to accumulate long term positions ahead of the forecast top-line pick-up, as well as bottom line margin expansion, driven by the inherent leverage in the business model as well as the technology investments."
Barclays lowers DNB's FY11 EPS estimate from $6.15 to $5.89 and FY12 from $6.45 to $6.26.
Barclays cuts EFX's FY11 EPS estimate from $2.52 to $2.06 and FY12 from $2.60 to $2.20.
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