With the business model of Terremark Worldwide (NASDAQ:TMRK) offering clarity into probable future revenue and earnings, Kaufman sees them growing by 20 percent in fiscal year 2011, and 25 percent in fiscal year 2012.
Kaufman said, "Terremark's business model provides good visibility into future quarters with high recurring revenue. The company continues to demonstrate business momentum and we believe can continue to attract new customers with its mix of colocation, managed hosting and cloud. Despite a soft economic environment the company is poised to grow its top line roughly 20% this fiscal year and we expect growth to accelerate to nearly 25% top-line growth in fiscal 2012 with EBITDA growth of over 37% along with margin expansion. The opportunity provided by the company's relationship with Verizon and the federal government provide a material opportunity to drive additional business momentum."
Kaufman Bros. maintains a "Buy" on Terremark Worldwide, which closed Tuesday at $12.78, down $0.26, or 1.99 percent. Kaufman raised their price target on them from $11 to $15.
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