Data#3 Ltd leads on analyst revisions among 14 companies in Australia's information technology sector tracked by at least three analysts, data from Thomson Reuters StarMine shows.
The IT solutions company has an Analyst Revision Model (ARM) score of 98, the highest in the sector. This score has increased 42 points over the past 30 days. It also has high Earnings Quality (EQ) and Value-Momentum (Val-Mo) scores of 97 and 83 respectively.
Data#3's free cash flow for the six months ending June 2012, at A$65 million, represents a rise of 10.2 percent from a year earlier. Its net income remained almost stable, declining only A$1 million to A$6 million during the same period.
The company's forward 12 month P/BV ratio, at 4.8, is 6 percent higher than its peer average.
Of the three analysts tracking the stock, two give it a "strong buy" or "buy" while one rates it a "hold".
The stock currently trades at 76 percent of its intrinsic value of A$1.52. The stock price has risen nearly 6 percent over the past 6 months, while the broader index gained just over 3 percent in the same period, as of Wednesday's close.
On the other end of the spectrum, Silex Systems Ltd.
lags the sector with an ARM score of 13.
Data#3 said on Aug. 24 its full-year 2012 revenues saw a record growth of 16.3 percent, which is well above the industry average.
StarMine's Analyst Revision Model ranks stocks based on analysts' revision of earnings and revenue estimates and changes in their ratings, and usually gives additional weight to analysts who have been more accurate in the past.
The Earnings Quality model is a percentile (1-100) ranking of stocks based on sustainability of earnings, with 100 representing the highest rank.
StarMine's Val-Mo model provides a 1-100 percentile ranking of stocks and rates stocks based on a combination of two value and two momentum metrics.
(Reporting By Reshma Apte; Editing by Jijo Jacob)
Keywords: MIDCAP DATA#3/