NEW YORK (TheStreet) -- Shares of Corporate Executive Board Co. (CEB - Get Report) are higher by 0.45% to $68.88 in pre-market trade after Deutsche Bank (DB - Get Report) upgraded the advisory company to "buy" from "hold."
The firm maintains an $80 price target for the shares.
TheStreet Ratings team rates CORPORATE EXECUTIVE BRD CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CORPORATE EXECUTIVE BRD CO (CEB) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 75.1% when compared to the same quarter one year prior, rising from $7.18 million to $12.58 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 19.5%. Since the same quarter one year prior, revenues rose by 10.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $53.71 million or 19.80% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.08%.
- The gross profit margin for CORPORATE EXECUTIVE BRD CO is rather high; currently it is at 64.96%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.60% trails the industry average.
- Powered by its strong earnings growth of 76.19% and other important driving factors, this stock has surged by 31.94% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full analysis from the report here: CEB Ratings Report