Oppenheimer Comments On TeleTec Holdings Following Analyst Day

TeleTec Holdings TTEC kicked off its analyst day in New York City, reiterating guidance and setting longer term targets through 2014, which suggests a steady upward trajectory both on the top line and margins. TTEC reiterated its FY11 outlook of 5-6% revenue growth and 8.5-9.5% operating margins. Oppenheimer believes stable volumes from existing clients, plus a solid pipeline of new opportunities and strong uptake of higher margin tech-based solutions, bode well for resumed top-line growth in FY11. Given improving growth trends and a solid pipeline, Oppenheimer reiterates its Outperform rating and $23 PT. Stabilizing fundamentals, return to top-line growth in FY11 following 2 years of declines and healthy balance sheet/FCF generation further supported by buybacks are all positives for TTEC. TTEC has been fairly active on the buyback front through 2010, and Oppenheimer expects buyback levels to remain consistent through 2011. TTEC recently announed a $50M buyback plan which takes total available since Dec. 2010 to 95M. Recall that in 2010, TTEC repurchased 5M shares, or $80M worth. TTEC is trading higher at $19.75