Broadband Helps Expand NDS Group

On back of strong growth in emerging markets, Zacks senior analyst Robert J Perri retains confidence in ADR's of NDS Group Plc (NNDS) with a Buy rating.  His latest research report explains why:

"NDS Group supplies smart cards and set-top box software that enable broadcast or broadband platform operators and content providers to deliver content securely to subscribers for digital satellite, pay-television and Internet services. The company’s products help broadcasters manage customer access to various programs. Subscribers can record and view their chosen programs on a pay-per-view basis. NDS Group is conducting research and development activities in India, China and Israel, which helps to keep its costs low.

"We believe shares of NDS Group should continue to perform well due to our strong outlook for 2008 and 2009. The results for the first quarter were much better than our estimates, and we expect the company to continue to grow revenues in excess of 17%, while growing earnings more than 24% for 2008 as the company has now established a presence in several emerging markets and can now begin to leverage its presence in these markets to fuel growth through add-on service revenues.

"We have raised our revenue and earnings outlook for 2008 and 2009 despite the currency headwind, and expect the company to continue to expand in emerging markets while adding additional revenue streams in developed markets. We continue to rate shares of NDS a Buy with a higher target price of $65.00 based on NDS selling between 22.5x 25x our new 2008 EPADS estimate of $2.80."

Read the full analyst report on NNDS .