Jefferies Comments on InnerWorkings (INWK)

Jefferies & Company released a report commenting on InnerWorkings

. In the report, Jefferies expected increased growth for the company in the future, but was unwilling to recommend the stock for purchase at present levels. Jefferies states, “Top line growth should remain healthy, benefiting from a) improved macro, b) new account growth, and c) traction of new initiatives. Change in mix and acquisitions are likely to keep a lid on gross margins, however. We are adjusting our estimates to reflect 1Q performance and management's revised outlook for the $590-620M in revenue, up from $580-610M previously and reiterated guidance for the $0.29-0.32 in FAAP EPS. We're maintaining a Hold rating on valuation as the stock trades at 12.3x EV/EBITDA and 29.3xP/E on our FY11 estimates.” Jefferies has a Hold rating on InnerWorkings and a price target of $9.00. InnerWorkings was up $0.11 yesterday to close at $8.97.