Markets & Finance

CS First Boston Ups Resources Connection to 'Buy'

CS First Boston upgraded Resources Connection (RECN) to buy from hold.

On Wednesday the company posted $0.12 fourth quarter earnings per share. Analyst Gregory Cappelli says results were impacted by the soft economic environment and higher than anticipated selling, general and administrative expense.

He believes the environment remains the biggest risk to the company's near term results, therefore he cut the $0.80 fiscal 2003 (May) earnings per share estimate to $0.65. Also he lowered the $32 target to $25.

Overall, Cappielli thinks Resources Connection is well positioned to take advantage of the changing landscape within the finance and accounting sector. He thinks the company should benefit greatly from its new internal audit business given the magnitude of recent corporate failures.

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