New York, NY - February 20, 2013 (Investorideas.com Newswire) Taglich Brothers released an updated research report on Command Security Corp. (MOC) and reiterated a Speculative Buy rating with the 12-month price target raised to $2.50 per share from $1.55 as revenue growth shows added momentum due to an improved US economic outlook. The report noted the following key investment considerations:
As the US economy strengthens, the security needs of start-up businesses, the increase of security budgets and improved profitability of the US airline industry should drive stronger growth.
But uncertainty underlying economic growth forecasts, limited pricing flexibility due to competitive pressures, and lingering weakness in the airline sector could compromise the company's near-term earnings prospects.
Command earned a 3Q13 (results released Feb. 12, 2013) profit of $0.04, well above our breakeven projection and EPS of $0.02 for 3Q12. Revenue for the quarter was up 9% to $38.9 million.
For FY13 we project EPS of $0.11, up from our earlier estimate of $0.06 per share, on revenue of $148.7 million, up from our earlier projection of $144.8 million. As US economic conditions improve, so should Command's growth prospects. We have lowered our FY14 EPS estimate to $0.14 from $0.17 but raised our revenue projection to $154.8 million from $149 million. For FY15, we project EPS of $0.19 per share on revenue of $161 million.
Command's balance sheet is leveraged, with 50% of tangible assets financed by tangible equity. With retention of cash earnings, the company's balance sheet could improve considerably by FY14 if receivables are well controlled.
NetSol Technologies, Inc., headquartered in Calabasas, CA, is a global provider of information technology and enterprise application solutions including credit and finance portfolio management systems, SAP consulting and services, custom development, systems integration, and technical services for global Financial, Leasing, Insurance, Energy, and Technology markets.
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