UPDATE: Piper Jaffray Reiterates Overweight Rating, Lowers PT on ATA
In a report published Wednesday, Piper Jaffray & Co. reiterated its Overweight rating on ATA (NASDAQ: ATAI), but lowered its price target from $14.00 to $9.00.
Piper Jaffray noted, “We continue to believe ATAI shares are undervalued, but acknowledge the recent (unexplained) y/y decline in Q1 (June) test volumes for the Security Association of China (SAC, 37% of FY12 revenue), and pause in the private testing business as the company builds out its S&M team, requires the company to make up some ground in 2H13 to achieve its FY13 top- and bottom-line guidance, which management reiterated. Having said that, we expect the security guard test roll-out and the possibility of new contract wins such as ATA's recent CPA exam contract will act as potential catalysts for the shares. We maintain our Overweight rating on ATAI shares while lowering our price target from $14 to $9, based on 20x FY13E PF EPS of $0.45.”
ATA closed on Tuesday at $4.40.
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