S&P downgrades Factset Research Sys. (FDS) To Buy From Strong Buy
March 17, 2010 1:02 PM
S&P downgraded Factset Research Sys. (NYSE: FDS) to Buy From Strong Buy, this morning.
S&P Analyst,Z. Bokhari, lowered his opinion to Buy from Strong buy on the valuation. Factset reported earnings in the Feb-Q EPS of $0.75, vs. $0.71. That was $0.01 above his view.
Sales rose 0.5% to $157M, but were $1.5M above the S&P estimate. The key metrics were 8 new clients, and 1,400 seats, improved from Nov-Q in a stabilizing environment.
“We think execution stayed solid. Annual subscription value rose 2% from Nov-Q, above our 0.5% forecast, and we are optimistic about second half FY 10 (Aug.).”
The analyst thinks that planned headcount adds to the support of expanded product offerings, and should keep margins flat in FY 10 and FY 11.
S&P is lifting fiscal year, 10 EPS estimate $0.02 to $3.05, but is keeping FY 11's of $3.31. They are keeping the target price of $83.
steve schuster
