) to outperform.
Analyst Timothy Byrne says he's upgrading the management-consulting firm from neutral on price, better-than-expected first-quarter results, and forward guidance. He notes the stock is down 27% since the start of June and down 41% since late January, despite improving business momentum and greater leverage.
Byrne says the 10 cents first-quarter EPS beat his 6 cents to 7 cents guidance. He notes the 11 cents to 12 cents second-quarter EPS estimate, and the 46 cents to 50 cents fiscal 2005 guidance is also very strong and above current estimates. He has his estimates under review, but would expect to take a fiscal 2005 (Mar.) EPS estimate to the 46 cents range from the 24 cents range. Finally, Byrne says valuation is compelling, and has an $11 target.