Deutsche Bank Raises PT on Kforce to $23 (KFRC)

Deutsche Bank is out with its report today on Kforce KFRC, increasing its PT from $20 to $23. In a note to clients, Deutsche Bank writes, "We are much more positive on Kforce post their long-term revenue growth target of 15% and higher than expected incremental margins, both driven by the National Recruiting Center. Our 1QE EPS moves from $0.12 to $0.14 (prior Street $0.12) and our 2QE EPS increases from $0.20 to $0.21 (prior Street $0.19). Our FY11E EPS rises from $0.80 to $0.84 (prior Street $0.77). We maintain our Buy due to KFRC's stable organic growth, strong incremental margins, and attractive forward multiples. BUY. We relied more heavily on the EV/sales and DCF to arrive at our $23 price target." Shares of KFRC closed yesterday at $18.72, down 1.27% from Monday's close.