Deutsche Bank Alex. Brown reiterates buy on Advisory Board (ABCO).
Analyst Brandt Sakakeeny says operations appear strong: metrics on contract value, member retention, cross-selling, and new member sales all tracked well. He notes new clients and price increases also contributed to growth in the target range of 5%-7%.
He says performance received a boost from 88% member retention, which was above the historical range of 84%-86%. Sakakeeny sees $0.72 calendar 2002 earnings per share from continuing operations; he raisesd his $0.73 fiscal 2003 (Mar.) EPS estimate to $0.75. As a result of a strong quarter, and continued improvement in operating metrics, he raised his $35 target to $40.