Bloomberg "Anywhere" Remote Login Bloomberg "Terminal" Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Lehman Cuts Resources Connection Rating


Lehman Brothers downgraded Resources Connection (RECN) to underweight from equal-weight.

Analyst Adam Waldo says his downgrade was based on valuation. He notes the stock is up more than 30% to $22 since the company's slightly better-than-expected second quarter release on Dec. 18. He notes this surpasses his $21 one-year target, or 30 times his 67 cents calendar 2003 earnings per share estimate, and 3.3% 2003 forecasted free cash flow yield.

Waldo thinks the current valuation offers very limited margin of safety for investors, as it discounts rapid acceleration in bull market finance, accounting consulting, and staffing demand throughout 2003 and 2004, which clearly is not visible to him.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus