ST Robinson Humphrey Ups FTI Consulting to Buy

Notes improvements such as increasing visibility into the company's revenue growth

From Standard & Poor's Equity Research

ST Robinson Humphrey upgraded FTI Consulting (FCN) to buy from neutral, noting the company's strong pace of new hires and increasing visibility into its revenue growth.

Analyst Tobey Sommer also expects continued robust demand for financial consulting services from a greater number of providers, at a time of fewer traditional existing providers. The analyst notes growing attractiveness of the company's brand in client buying decisions as well as potential new hires' decisions. The analyst also cites moderating risk associated with the contract negotiation of 30 senior executives, whose contracts expire in August. Sommer raises a $1.29 2006 earnings per share (EPS) estimate to $1.36 and a $1.50 2007 estimate to $1.60. The analyst also set a $35 stock price target.

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