Monday, 19 March 2007

On The Up & Up

Catalyst Equity Research analyst Robin Cornwell has upwardly revised his earlier take on Brainhunter's share price with a one-year target of $1.70 per share.

Cornwell said the increase of $0.05 per share from his earlier forecast was based on better-than-expected EBITDA for the Q1/07, ending December 31, 2006.

In his first forecast, Cornwell called for EBITDA for the latter quarter of $1.7 million. The actual figure came in higher at $2.0 million, or $0.05 per share.

Revenue for that quarter was reported at $54.7 million, up from $33.9 million in Q1/05 for a year-over-year increase of 61%.

Cornwell noted that 75% of Brainhunter's growth was organic, driven by higher sales in the Information Technology and engineering staffing business.
As a point of interest, first quarter revenue far exceeds Brainhunter's total market cap of just over $30 million based on a $0.70 share price and about 43 million shares issued.

Click here to read the full report.