Deutsche Bank Reiterates Buy On Huron (HURN)
Deutsche Bank is reiterating its Buy rating and $27 price target on shares of Huron Consulting Group (NASDAQ: HURN) after a recent pullback in shares.
In a note to clients Deutsche Bank says, "Huron's shares are down 6% after 2Q results and just above our upgrade price. We think the key driver of the decline is the lowered FY10 guidance due to delayed hospital projects, which are now fully ramped up, and soft 2Q results in Disputes & Investigations (6% of revs). The increasing uncertainty in the macro environment should lift Huron's mulitple due to its 40-45% rev exposure to non-cyclical, structural growth hospital consulting, and its 18% exposure to E-discovery - which is gaining share due to Huron's low cost offering. We estimate Huron has only 20-25% pro-cyclical exposure versus FCN at 30-35% and Navigant (not rated, $10.35) at 40-50%. We think this makes Huron a safer play than peers in this low-growth economy."
Shares of Huron Consulting Group closed at $20.01 yesterday, down 46 cents.
