UPDATE: Stifel Initiates Coverage on Navigant Consulting as Positive Factors Seem Reasonably Discounted

In a report published Thursday, Stifel analyst Jerry Herman initiated coverage on Navigant Consulting NCI with a Hold rating. In the report, Stifel noted, “We are initiating coverage of Navigant Consulting (NCI) with a Hold rating. Led by a newer management team, there is an emphasis on improved profitability, greater exposure into higher growth industries, such as health care and energy, and an increasing contribution from more highly visible/predictable/recurring revenue streams. With the shares up 70% year to date, versus the S&P 500 at 29%, and trading at 16.5x and 8.4x FY14E EPS and EV/EBITDA, respectively, we believe the improved performance and growth prospects have been reasonably discounted for now. Thus, our rating is Hold.” Navigant Consulting closed on Wednesday at $19.02.