Oppenheimer Reiterates Longtop Financial Technologies (LFT) Outperform Rating
March 10, 2010 9:31 AM
Oppenheimer analysts Glenn Greene, Paul Keung and John Wharton reiterated their Outperform rating and price target of $45 for shares of Longtop Financial Technologies (NYSE: LFT).
Longtop Financial Technologies specializes in providing Risk Management, Business Intelligence, and Core Banking services to clients, which include four of China's biggest banks.
Although Longtop Financial Technologies has not issued guidance for fiscal year 2011 yet, the company stated during its 3rd Quarter fiscal year 2010 call that it was very comfortable with Wall Street's fiscal year 2011 estimates.
The Oppenheimer analysts wrote that, "overall, we expect LFT to continue to benefit disproportionately from the overall secular trend of modernization of IT systems for Chinese banks. Furthermore, we think LFT is well positioned to deliver solid growth for the foreseeable future and enjoys high barriers to entry. Longtop is currently trading at 23.4x our FY11 EPS estimate of $1.55 or 20.0x our CY11 estimate of $1.81. Consider that, adjusted for ~$6.50 net cash, LFT is trading at 19.2x our FY11 estimate and 16.5x our CY11 estimate despite LFT reiterating its intent to grow "at least" 30% in FY11."
