UPDATE: Stifel Nicolaus Raises PT to $58 on Advisory Board Company on Solid Revenue, FCF
Stifel Nicolaus maintained Advisory Board Company (NASDAQ: ABCO) at Buy and raised the price target from $51.00 to $58.00.
Stifel Nicolaus noted, "Revenue and FCF were solid, in our view, though EPS were pressured from recent acquisitions that are generating losses and require investment. We believe the story remains generally consistent, though we think ABCO's revenue growth is likely to track closer to management's “mid-teens” growth target now (we seem to be past the hyper-growth stage, at least for now) – guidance is for 15%-17% top line growth. We are raising our target price from $51 to $58, reflecting 21.1x CY13 EBITDA, consistent with the average SaaS EBITDA multiple."
Advisory Board Company closed at $53.24 on Wednesday.
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