Telvent GIT Reports Earnings Ahead of Estimates (TLVT)

Telvent reported Q2 revenues of €186 million, ahead of consensus. Organic growth was up 6% Y/Y versus down 1% Y/Y in Q1.

The analysts said, "We believe our one-year target multiple of 14x 2011 adjusted USD EPS, well within the historical valuation range, is achievable led by recovering demand in the sluggish transportation vertical and increased spending by utilities on smart grid solutions. Risks to the investment case include a sluggish transportation business, competition from much larger industry players, and concentrated exposure to the Spanish market."

Telvent is rated Buy with a price target of $30.00.

Shares of TLVT are currently trading at $21.77.

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