Deutsche Bank Ups PT On ABCO

Deutsche Bank, citing a 2Q ahead of expectations, is raising its price target on Advisory Board Company ABCO from $57 to $60. According to Deutsche Bank, “Clean 2Q EPS of $0.35 beat our $0.32 expectation and management raised guidance largely due to strong contract value growth of 22% in the June qtr, up from 17% in the Mar qtr. Management raised underlying revenue growth from +16% YoY in cal'11E to +22%. Our cal'11E EPS rises from $1.37 to $1.53 (+12%) while cal'12E rises from $1.84 to $1.94 (+5%). We raise our price target from $57 to $60 due to the higher EPS estimates. We rate ABCO a Hold as we believe its strong growth outlook is nearly fully discounted in the share price.” As mentioned above, Deutsche Bank is maintaining its Hold rating on the stock. ABCO closed yesterday at $50.39.