Analyst Initiates FTI Consulting At 'Outperform'

NEW YORK (AP) — Shares of FTI Consulting Inc. picked up 3.5 percent in Tuesday trading after a Baird analyst initiated coverage of the West Palm Beach, Fla.-based consultancy with an "Outperform" rating, saying the majority of the company's "counter cyclical" businesses should benefit from the recession.

Daniel Leben put a $66 price target on the stock, implying upside of 40 percent based on Monday's close.

The business advisory group could benefit from its units involved with company restructurings and litigation. Freeze-ups in credit markets are increasing corporate restructurings, he said. The Obama administration's emphasis on business enforcement and regulation could also boost the company's economic consulting and dispute engagement units, Leben said.

"FTI's businesses benefit from a recession," Leben wrote, and the company's 2006 acquisition of Financial Dynamics, a financial communications consultancy, has increased its exposure to international growth.

The U.S. has officially been in recession since December 2007.

FTI Consulting shares gained $1.65 to $48.97 in midday trading.