UPDATE: Stifel Nicolaus Raises PT on Advisory Board Company on Continued Solid Growth, Market Expansion

In a report published Thursday, Stifel Nicolaus analyst Shlomo Rosenbaum reiterated a Buy rating on Advisory Board Company ABCO, and raised the price target from $58.00 to $68.00.

In the report, Stifel Nicolaus noted, “ABCO reported solid numbers in our view, and we believe the YOY CV growth rate (15.6%) is indicative of the revenue growth rate the company will generate for an extended period of time. The company continues to expand its addressable target market, and along this vein announced its first Higher Education analytical tools membership (potential market of over 1,000 colleges and universities), and an acquisition of a small company that will be the platform for another healthcare analytical tools membership (this time in the physician referrals space). We continue to like the long-term growth story, and believe there is significant operating leverage potential inherent in the business (likely 700bps-800bps). We are raising our target price from $58 to $68, and our new target price rolls our prior EV/EBITDA valuation multiple (21.2x) from our 2013 estimate to our 2014 estimate.”

Advisory Board Company closed on Wednesday at $58.69.