J.P. Morgan Maintains CDI Corporation Rating; Establishes Dec '11 PT

On Thursday, CDI Corporation

reported approximately inline 3Q10 revenues of $249mn (although technically a 1% beat to J.P. Morgan's estimate). “3Q10 EPS came in at $0.09, a penny beat to our estimate, which includes a $0.04 drag from considerably higher tax rate,” J.P. Morgan writes. “We are modeling 4Q10 revenues to increase 15% y/y to $251mn and our 4Q10 EPS is now $0.14 (vs. $0.10 previously). For 2011, we are estimating revenue growth of 10% y/y and EPS of $0.59. We are projecting 2012 revenues of $1.1bn and EPS of $0.78.” J.P. Morgan maintains its Neutral rating on CDI, adding, “We are establishing our Dec '11 price target of $16, based on a 0.27x EV/S multiple on our '11 revenue estimate.” CDI Corporation currently trades at $14.07.