UPDATE: Stifel Nicolaus Raises PT to $63 on The Corporate Executive Board Compand on Improved Momentum
Stifel Nicolaus maintained The Corporate Executive Board Company (NYSE: CEB) with a Buy rating and raised the price target from $49.00 to $63.00.
Stifel Nicolaus noted, "Story of the day is an improvement in the legacy CEB European business that showed respectable growth in 4Q12, versus recent quarter declines, and some signs that the SHL business is generating some traction. … We now expect CEB to generate in excess of $4 per share in FCF in 2014 (though it is possible it can generate close to that number in 2013), and we are raising our target price to $63, which represents a 15x multiple (roughly a market multiple) our on 2014 FCF per share estimate of $4.22. Our Buy rating and raised target price are predicated on our view that momentum is improving in the core business and our expectation that CEB will execute on its turnaround growth plan for SHL in 2013."
The Corporate Executive Board Compan closed at $54.58 on Thursday.
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