Barclays Maintains an 'Equalweight' on Solera Holdings (SLH); What Auto Registration Slowdown Means

Barclays maintains an 'Equalweight' on Solera Holdings (NYSE: SLH) price target of $42.00.

Analyst, Manav Patnaik, said, "While we find SLH's high software-led margins (70%+ gross; 40% EBITDA) and global market positioning attractive, its 60%+ revenue exposure to Europe and the potentially deteriorating US competitive landscape are of concern. SLH stands by its 2014 goals of $1B sales/$450M EBITDA, albeit with more M&A."

Patnaik mentioned that SLH's business is driven by the number of cars on the road (car parc) x frequency. If new car sales are low or down, the number of cars on the road tends to stay the same but the average age of these cars does increase.

SLH provides software and services to the automobile insurance claims processing industry. The company offers estimating and workflow software to manage the overall claims process, estimate the cost to repair a damaged vehicle, and calculate the pre-collision fair market value of a vehicle.

For an analyst ratings summary and ratings history on Solera Holdings click here. For more ratings news on Solera Holdings click here.

Shares of Solera Holdings closed at $43.19 yesterday.

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