Barclays Maintains an 'Overweight' on Resources Connect (RECN); In-line 4Q'11 & Solid Start to 1Q'12

Barclays maintains an 'Overweight' on Resources Connect (NASDAQ: RECN), PT $18.

Barclays analyst says, "Last night, Resources Connection reported solid but mixed F4Q'11 results that narrowly missed revenue estimates, but exceeded adjusted EPS estimates, due to slightly better margins and accelerating share repurchases...We are trimming our FY'12-13 estimates by $0.04/$0.02 to $0.51/$0.83 to incorporate a slower revenue ramp and somewhat weaker margins. Our price target remains $18, or 22.5x our CY'12 EPS estimate of $0.67, plus the company's $3.13 per share of net cash."

"While risks to RECN's profit rebound have increased, with signs of slowing economic activity, we believe the company remains on track, and expect a healthy profit rebound over the next few years. At 18.2x/12.3x CY'12-13 adjusted EPS (13.5x/9.3x excluding net cash), we find RECN attractive, and recommend patient investors accumulate the shares."

For more ratings news on Resources Connect click here and for the rating history of Resources Connect click here.

Shares of Resources Connect closed at $12.18 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Barclays Upgrades Enphase Energy (ENPH) to Overweight, 'Approaching inflection point'
• H.C. Wainwright Downgrades Argo Blockchain ADR (ARBK) to Neutral
• Dover Corp. (DOV) PT Raised to $185 at Mizuho