New York, NY - February 20, 2013 (www.investorideas.com newswire) Taglich Brothers released an updated research report on NetSol Technologies, Inc. (NTWK), reiterating a Speculative Buy rating and increasing the 12-month price target to $11.60 from $11.00 per share. The report noted the following key investment considerations:
With an estimated 8,300 potential customers, growth potential for NetSol's Financial Suite (NFS™) platform is substantial. Globally, the company has captured less than 1% of total potential customers. We estimate 3% of the potential auto-finance customers in Asia are NetSol customers.
The growth of financial leasing is driving demand for the NFS platform in Asia . Financial leasing in China increased an estimated 66% in 2012 due to the economic slowdown, which is making leasing a more attractive option than a purchase. Eight Chinese banks are launching financial leasing operations in 2013 in order to drive growth and profits.
Three 2Q13 contract awards for the NFS platform in Asia will contribute at least $5 million to revenue in FY13.
2Q13 sales (reported on 2/12/13) increased by 37.2% to $11.8 million, increasing EPS to $0.28 per share from $0.06 per share in the year earlier quarter. We projected sales of $10.9 million and EPS of $0.11 per share.
Increased our FY13 EPS projection to $0.95 from $0.90 per share, on sales of $49.1 million, unchanged from our prior forecast. Our growth forecast reflects 1H13 results, at least 10 Vroozi implementations, NFS contract wins, and better than anticipated leveraging of expenses.
We project FY14 EPS of $1.10 on sales of $54.1 million, up $0.08 per share and $4.2 million from our prior forecast. Our forecast reflects the North American launch of the NFS platform, worldwide Vroozi activations, improved operations in Europe, and information security consulting contracts in Saudi Arabia.
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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