NNDS Continues to Impress

We wanted to find out why NDS Group (NNDS) remains one of the top Buy recommendations in the coverage of Zacks senior European markets analyst Robert Perri, CFA, so we checked out his latest analyst note on the company: “NNDS reported a solid fourth quarter with revenues and earnings beating our estimates handily. We expect the company to continue to take advantage of gaming and DVR technologies that are built into set-top boxes, and continue to win new deals in emerging markets during 2008 and beyond. We are raising our revenue and earnings outlook for 2008 while initiating new 2009 estimates that call for revenue growth of 13.5% and earnings growth of 16.5% over our new 2008 estimates. “Quarterly results were much better than our expectations, and we expect the company to continue to grow revenues in excess of 15% a year, while growing earnings more than 20% a year 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. “Additionally, the continued add-on acquisitions the company makes helps to improve its technology and could be leveraged into further revenue growth opportunities in the longer term. We continue to rate shares of NNDS a Buy, and have raised our price target to $58, based on the company selling at 22.5x our new 2008 EPS estimate of $2.58 per share.” Read the analyst note on NNDS