Benchmark Raises PT, Upgrades Rating On ERES

Benchmark is raising its price target from $5 to $7 on eResearch Technology Inc. ERES and has upgraded its rating from Sell to Hold on the stock. Says Benchmark, in the report, “[ERES] reported strong Q1 contract bookings and non-GAAP earnings, but cancellations soared and management warned that bookings are “likely to fluctuate”. Record bookings of $71.8 million represented the award of large long- term phase-III studies but cancellations soaring 24.6% was attributed to heightened uncertainty of realizing revenue from long-term contracts. Since the RS acquisition took full effect in 3Q10, bookings and cancellations have trended higher, yet revenue has declined two quarters in a row and backlog has expanded only 5.1% despite record Q1 bookings.” ERES closed at $6.11 yesterday.