CS First Boston initated coverage of Blackboard (BBBB) with an outperform rating.
Analyst Brandon Dobell says he believes the enterprise-software maker's market opportunity is approximately $2 billion, and is comprised of domestic and international colleges, universities, and K-12 schools. He hinks the company's "runway" is substantial, and he says the strong trend of using techology in education should support multiple years of 20%-plus revenue growth.
Dobell thinks Blackboard has many growth opportunities, including further penetration of its core markets, upselling existing customers, cross-selling and expanding its product suite, and market acquisitions.With solid top-line and bottom-line growth, he thinks the stock can carry a premium multiple. Dobell sees 56 cents 2005 earnings per share. He set a $20 target.