CRAI in Tough Situation

The company's operating environment remains challenging, with client demand slowing and utilization rates continuing to fall despite recent restructuring activities. We anticipate that investors will demand evidence that management has properly addressed the company's operational problems before affording a higher multiple to CRAI shares. The shares of CRA International are currently trading at a discount to the peer group average on a price/earnings basis.

Our price target of $20 per share reflects a multiple of 9x our 2009 earnings per share estimate. While this multiple represents a discount to the peer group average, we feel this discount is well warranted given the company's poor operating performance in 2008 and the uncertainty regarding its business prospects in 2009.

Read the full analyst report on CRAI

Read the full analyst report on CRAI