Ness Technologies Inc (NSTC)

[ByloCellhi]

More info FYI

Target $12-15. Bottoming after disappointing earnings guidance last quarter. MACD bottoming, stochastic oversold. Some comments from a recent Briefing.com analysis:

The co is expected to grow EPS next year by 30% to $0.91 for a very reasonable p/e of 11.4x. The co is profitable and is expected to post sales of $446 mln next year, up 19% yoy. Also, the stock trades at less than 1x 2005 sales. The co recently hired Ytzhak Edelman as CFO. He was the CFO at Cellcom, Israel's largest cellular operator. This could be seen as a sign of the co's desire to get the stock back on track. The balance sheet is in good shape with $109 mln in cash and a very reasonable LT debt-to-cap ratio of 11%. CIBC recently initiated the stock with an Outperform and $15 tgt, noting that the co is seeing strong demand for its India-based managed lab service, in which it sets up, staffs, and manages R&D departments for software vendors. The firm also notes that the co has entered Europe via M&A and is leveraging its relationships with alliance partners like SAP, MSFT, and BEAS to replicate its Israeli big fish status in several East European countries. Also, Piper Jaffray last month upgraded the stock to Outperform with a $14 tgt. The firm noted that mgmt suggested on its last earnings call that rev growth for the remainder of CY05 would likely be back-end-loaded.

NSTC is a global provider of IT services and business solutions such as outsourcing, system integration & devel., software & consulting & training.