TISA, 3.68, very nice yesterday and today, dual listing on the TASE...Dutton Associates Announces Investment Opinion: Top Image Systems Strong Buy Rating In Update Coverage By Dutton Associates
Monday March 6, 12:00 pm ET
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--March 6, 2006--Dutton Associates updates its coverage of Top Image Systems (Nasdaq:TISA - News) maintaining a Strong Buy rating and raising our 12 month price target to $5.00. The 10-page report by Dutton senior analyst Rafael Kapelinski is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.
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Top Image Systems has announced a set of strong 4Q 2005 results. Revenues came in at US $4.71 million and EPS reached US $0.02 versus our estimate of U.S. $0.00. Given the current valuation (1.4x 2006E sales and 8.6x 2006E EBITDA), we believe that we should see additional strength in the share price over the coming weeks. The Company's 2005 revenues (+50.5% year-on-year) compare favorably with those of ReadSoft's (+12%) and OpenText's (+13%), which remain the primary competitors. Also, the Company is on track to generate the target EBITDA 2006E margin of approximately 14%. In our view, the results are yet another piece of evidence that the Company is beginning to emerge as one of the leading players in the content capture market. We also continue to believe that the Company's positioning as a pure-play content capture manufacturer with solution providing capability makes it an attractive acquisition candidate in the ongoing consolidation of the content capture market. We reiterate our Strong Buy rating and upgrade our price target to $5.00 per share.
About Dutton Associates
Dutton Associates is one of the largest independent investment research firms in the U.S. Its 29 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 130 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $17,000 from the Company for 2 Research Reports with coverage commencing on 11/25/2005. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at before investing.
Contact:
Dutton Associates
John M. Dutton, 916-941-8119
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Source: Top Image Systems
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