Piper Jaffray Upgrades ATA to Neutral (ATAI)
August 24, 2010 8:56 AM
Piper Jaffray is out with a research report this morning, where it upgrades shares of ATA Inc. (NASDAQ: ATAI) to Neutral, from Underweight; it has a $3.00 price target on the stock.
The PJ analysts cited the following reasons for the upgrade:
1. “We believe the shares have limited downside from here, as we don't see a negative catalyst on the horizon to drive the shares lower
2. Conversely, we don't see a near-term catalyst to drive the shares higher from current levels
3. While our sensitivity analysis regarding the security guard test suggests significant earnings power from this test, we lack visibility as to the timing of this test and the timing and magnitude of the corresponding positive earnings impact
4. Valuation: ATAI shares are currently trading in close proximity to our $3 price target (2x net cash).”
ATA Inc. is a provider of computer-based testing services. It offers services for the creation and delivery of computer-based tests utilizing the test delivery platform, testing technologies and providing testing services.
