Auriga Reiterates Buy, $9 Target on eResearch

Auriga maintains its Buy rating and $9 target price on eResearch ERT as it believes the stock remains undervalued following solid Q4 and outlook. Auriga says, "We are reiterating our BUY rating on eResearch Technology (ERT) on the heels of a strong Q4 in which bookings, revenue and EPS beat across the board. Just as encouraging is the FY12 initial outlook, the midpoint of which exceeds consensus. Irrespective of the rumor mongers that are suggesting ERT is on the block, we find current valuation extremely attractive relative to the company's earnings potential. This year ERT will begin to leverage the investments made in its integrated expERT 3 platform, which should drive gradual gross margin improvement, most dramatically in H2." ERT closed at $5.56 a share yesterday.