$4.00 price target for SVC from BNS!!! Latest text from Bank of Nova Scotia.
.Recent Update Text as of 28SEP13 SVC is scheduled to report Q3/F13 results on Thursday, October 3, before markets
open. A conference call is scheduled for 8:30 a.m. EST Dial-in (888) 771-4371
. ID#:35727243. Expecting revenue of $27.6M and $0.03 in EPS. We anticipate strong growth in the
quarter to come from the recognition of pushed out revenue from last quarter,
coupled with new wins and follow-on orders. Our forecast implies YOY growth of
27% outpacing the market again and consistent with consensus. We expect strong
product gross margins to offset higher opex increasing EPS two cents QOQ to
$0.03. . Expect strong Q4 growth with $37.4M in revenue and $0.08 in EPS. After a strong
finish last year we believe follow-on orders should show strength in the
seasonally strong fourth quarter. We expect higher revenue to drive gross
margins to two-year highs, adding five cents to EPS QOQ and three cents YOY. We
note our estimates are above the Street at $31.1M in revenue and $0.03 in EPS. . SVC continues to trade at an unwarranted discount to peers. SVC is exhibiting
the best growth and profitability characteristics so far this year but trades at
. a discount on almost every measure. Maintain SO. With a solid backlog, strong product offering, and growing market,
we expect SVC to deliver a strong year. And given the stock is trading at a
discount on almost all measures, we would be buyers.
Good Luck Boyzzz :)