Tuesday, February 06, 2007
Position Updates: NTRI, TLAB
via Briefing:
Via FlyontheWall:
| Nutrisystem up 2% yesterday, likely on potential Whitney offer for HLF - Boenning & Scattergood (44.24) | |
| Boenning & Scattergood notes that NTRI was up 2% yesterday, possibly aided by the buyout offer from Whitney & Co for Herbalife (HLF), which values HLF at 9x forward EBITDA; yet the stock quickly rose to a premium as most observers agreed that HLF should fetch over 10x EBITDA. This was also the valuation realized by privately-held Jenny Craig when it sold to Nestle in mid-2006. Firm says that applying a 10x EBITDA multiple to their 2007 est for NTRI and adjusting for cash generates a price range in the mid-$50's, which is below their tgt of $75. However, firm says the issue is growth: both HLF and Jenny Craig were priced as 10%+ sustainable growers, while NTRI recently provided conservative 1Q07 guidance for 40%+ growth. If you look ahead to a slower growth 2008 EBITDA scenario and apply a 10-11x valuation, firm derives a target in the $70's. |
Follow-up: TLAB upgraded to Buy from Neutral, tgt $12.50@MLCOMerrill upgraded shares of TLAB citing expectations for an improvement in cross-connect demand and margins. The firm expects TLAB to benefit from AT&T new broadband initiatives, a demand recovery at Cingular, T-Mobile 3G deployment plans, and an increase in Sprint/Nextel base stations.
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dont forget this one from briefing...
06-Feb-07 07:22 ET In Play Adobe Systems initiated with an Outperform at Credit Suisse- tgt $47 (38.44 ) : Credit Suisse initiates ADBE with an Outperform and a $47 tgt saying they believe Adobe is one of the best-positioned large-cap software companies, given its dominant positioning in the digital media business, along with a number of smaller, but rapidly growing plays in the enterprise, mobile, and Web 2.0 markets.
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06-Feb-07 07:22 ET In Play Adobe Systems initiated with an Outperform at Credit Suisse- tgt $47 (38.44 ) : Credit Suisse initiates ADBE with an Outperform and a $47 tgt saying they believe Adobe is one of the best-positioned large-cap software companies, given its dominant positioning in the digital media business, along with a number of smaller, but rapidly growing plays in the enterprise, mobile, and Web 2.0 markets.
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