Monday, July 24, 2006

Calls of Note Part 3

- Deutsche Bank is positive on Corporate Executive Board (NASDAQ:EXBD) ahead of results saying they are forecasting 2Q06 revs of $110.0mm and pre-FAS123R EPS of $0.52, in line with the Street. They expect the company to post another strong quarter with results ahead of forecasts for contract value and revs (at least 28%+ YoY growth for each), as well as for operating income, net income, and EPS.

Given strong contract value growth trends (+29-30%) they have witnessed through 1Q06, they think the stage is set for a probable increase in revenue guidance (to +27-28%) when the company reports 2Q06 results. Firm expects EXBD to reiterate bottom line guidance for 2H06, and to raise its year-end targets by any amount of upside it reports for 2Q06. Based on EXBD's April release, current 3Q06 forecast of $116.0mm (+24 YoY) in revs and $0.58 pre-FAS123R EPS (in line with the Street) is in line with the company's targeted range and looks very
achievable.

Reits Buy and $125 tgt.

Notablecalls: Expect to see a bounce around the 200 MA level.

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