Wachovia upgraded DiamondCluster (DTPI ) to outperform from market perform.
Analyst Edward Caso says his upgrade is based on growing comfort in an economically driven information-technology spending recovery, and an improving market backdrop for high-end technology-focused consulting services. He notes DiamondCluster's positioning as an early-cycle beneficiary, and he says he has continued comfort in recent positive operating trends.
Caso says DiamondCluster remains focused on enhancing shareholder value, and says the shares re attractive relative to the peer group of information-technology consulting organizations. He raised the 9 cents second-quarter loss estimate to 4 cents earnings per share; upped the 45 cents fiscal 2004 (March) loss estimate to 13 cents earnings per share; and boosted the 23 cents fiscal 2005 earnings per share to 41 cents earnings per share.