CSFB Starts Blackboard with Outperform

Analyst Brandon Dobell says the trend of using techology in education should support revenue growth for the software maker

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.

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