Friday, December 29, 2006

Calls of Note Part 1

- UBS is positive on Huron Consulting (NASDAQ:HURN) raising their 12-month target to $54 from $46. Firm's target is DCF based and uses a slightly higher 10-year rev CAGR of 15% versus 14% previously; this change resulted from rolling out higher 08 estimates than those used previously in DCF analysis.

UBS is maintaining their $1.90 07 EPS estimate and rolling out a $2.35 08 estimate. Firm's new target implies that in 12-months, investors will value HURN shares at 23x $2.35 08 EPS estimate (versus the current forward 12-month PE multiple of 25x and historical average of 23x).

Industry research suggests that demand for Huron's services remains robust and that Q4 hiring may have exceeded firm's expectations. UBS believes these factors bode well for Huron's Q4 results and near-term stock price performance.

Maintains Buy.

Notablecalls: Yes, it's THAT quiet out there this AM.

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