DB Alex. Brown Keeps 'Buy' on Advisory Board

Analyst Brandt Sakakeeny says operations appear strong. He also raised his price target on the health care research firm

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.

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