Equity Research Alert: NetSol Technologies, Inc. (NTWK) Research Update Released
Visit: NetSol Technologies, Inc.
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.
The full report can be viewed at http://www.taglichbrothers.com/equityuniverse/companies/netsoltech/netsoltech.aspx.
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.
Taglich Brothers, Inc. is full-service broker dealer focused exclusively on microcap companies. The Company defines the microcap segment of the equity market as companies with less than $250 million in market capitalization. Taglich Brothers currently offers institutional and retail brokerage services, investment banking and comprehensive research coverage to the investment community.
The Taglich Brothers' Equity Research department is dedicated to providing research reports that are informative, insightful and illuminating. Reports are designed to distill volumes of investment information into a concise, straightforward format so that busy professional investors can make informed investment decisions.
The information and statistical data contained herein have been obtained from sources, which we believe to be reliable but in no way are warranted by us as to accuracy or completeness. We do not undertake to advise you as to changes in figures or our views. This is not a solicitation of any order to buy or sell. Taglich Brothers, Inc. is fully disclosed with its clearing firm, Pershing, LLC, is not a market maker and does not sell to or buy from customers on a principal basis. The above statement is the opinion of Taglich Brothers, Inc. and is not a guarantee that the target price for the stock will be met or that predicted business results for the company will occur. There may be instances when fundamental, technical and quantitative opinions contained in this report are not in concert. We, our affiliates, any officer, director or stockholder or any member of their families may from time to time purchase or sell any of the above-mentioned or related securities. Analysts and members of the Research Department are prohibited from buying or selling securities issued by the companies that Taglich Brothers, Inc. has a research relationship with, except if ownership of such securities was prior to the start of such relationship, then an Analyst or member of the Research Department may sell such securities after obtaining expressed written permission from Compliance. All research issued by Taglich Brothers, Inc. is based on public information. As of the date of this report, we, our affiliates, any officer, director or stockholder, or any member of their families do not have a position in the stock of the company mentioned in this report. Taglich Brothers, Inc. does not currently have an Investment Banking relationship with the company mentioned in this report and was not a manager or co-manager of any offering for the company with in the last three years. The company prepaid for the first three months of distribution a total of $5,250 (USD) in March 2012, and will pay beginning August 2012 a monthly monetary fee of $1,750 (USD) to Taglich Brothers, Inc. for the creation and dissemination of research reports.
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