SunTrust Robinson Humphrey upgraded CheckFree (CKFR
) to buy from neutral, citing factors such as the company's improving market position.
Analyst Andrew Jeffrey says the company is bolstering its already-dominant Electronic Bill Payment and Presentment (EBPP) market position through a strategy emphasizing biller-facing solutions. He argues that CheckFree's non-EBPP business is poised to make growing contribution to long-term sustainable organic revenue, earnings per share (EPS,) earnings before interest taxes depreciation and amortization (EBITDA,) and free cash flow (FCF) growth. He sees $1.68 fiscal year 2006 (ending June) EPS, and $1.88 in fiscal year 2007. He also set a $62 12-month stock price target.