Jefferies Lowers Estimates and Price Target on Parexel (PRXL)

Jefferies is out with an analyst note this morning that lowers estimates and the price target for Parexel International PRXL, though maintains the Buy rating on the stock. Jefferies has a $28.00 price target; down from $29.00. Analysts cited the company recently updating their FY11 guidance, which came in at $0.05 below consensus. Analsysts said that “At current FX rates, next-twelve-months revenue would be negatively impacted by as much as $100M, according to our regression model. Roughly $85M of that impact falls in FY11. Extrapolating from recent disclosures, our best guess on the negative FX impact to FY11 EPS at current rates is in the 8-12c range. The lack of visibility into FX impact on EPS is confounding. In the past, providing investors granularity has been challenged by the complex matrix of currencies involved.” Jefferies closed by saying that “PRXL's multiple has now closed the gap with the group as the company has built the strongest bookings momentum. Our $28 PT is now 20x CY11, which pushes to the high end of the 15-20x PE multiple range for the group. We expect continued strong bookings to bode well for above average revenue growth, add a declining tax rate to drive EPS growth above the group average.”