Bank of America-Merrill Lynch retains ‘buy’ on Educomp Solutions
Bank of America-Merrill Lynch has retained its ‘buy’ rating on the stock.
By ET Bureau |
EDUCOMP SOLUTIONS
CMP: RS 4,449.20
TARGET PRICE: RS 4,600
Bank of America-Merrill Lynch has retained its ���buy��� rating on the stock. ���Educomp remains a strong play on growing adoption of technologybased education in K-12 (Kindergarten to Class12) private schools and increased spending by state governments on technology adoption in public schools. With less than 10% penetration in the Smart Class market, 98% market share and a strong growth potential in the K-12 market, Educomp remains a multi-year growth story, in our view,��� said a Merrill note to client.
���We forecast earnings per share (EPS) to grow at a compounded annual growth rate (CAGR) of 66% over FY09-11 . We see upside from the adoption of a new business model whereby Educomp would be securitising its revenues in Smart Class upfront leading to significant improvement in free cash flows for the company,��� the note added.
CMP: RS 4,449.20
TARGET PRICE: RS 4,600
Bank of America-Merrill Lynch has retained its ���buy��� rating on the stock. ���Educomp remains a strong play on growing adoption of technologybased education in K-12 (Kindergarten to Class12) private schools and increased spending by state governments on technology adoption in public schools. With less than 10% penetration in the Smart Class market, 98% market share and a strong growth potential in the K-12 market, Educomp remains a multi-year growth story, in our view,��� said a Merrill note to client.
���We forecast earnings per share (EPS) to grow at a compounded annual growth rate (CAGR) of 66% over FY09-11 . We see upside from the adoption of a new business model whereby Educomp would be securitising its revenues in Smart Class upfront leading to significant improvement in free cash flows for the company,��� the note added.
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