UniComp Inc. - Investment Opinion - 'Strong Buy'
GAINESVILLE, Fla.--(BUSINESS WIRE)--April 22, 1998--Barber & Bronson Inc. has initiated coverage of UniComp Inc. (NASDAQ:UCMP - news), with a ''1-Strong Buy'' in the short term and ''1-Strong Buy'' for long term investors.
UniComp Inc. is a diversified provider of information technology (IT) services, operating in several distinct market areas through its Aurora, ICS, Smoky Mountain and Unibol divisions. Over the past six years, UniComp has experienced tremendous growth by completing seven different acquisitions that have served to expand its current operations and to enter new markets. These acquisitions, combined with internal growth, have allowed UCMP to increase its annual revenues from $1.5 million in fiscal 1992 to an estimated $54.1 million in fiscal 1998 (ended Feb. 28th).
UniComp's revenues should continue to benefit from overall strength in the IT industry, which is expected to grow about 14% annually. In the past, the company has outpaced the industry's growth rate through a combination of internal growth and acquisitions. We expect this trend to continue and are forecasting long term annual growth of 30%, or double the industry average. Our 12 to 18 month target price on the stock is $10 per share, or 17 times our current fiscal year earnings estimate of $.59 per share.
Barber & Bronson Inc. is a full-service brokerage and investment banking firm based in Miami, with offices in New York and Hilton Head, S.C. Additional information may be obtained by visiting our web site at barberbronson.com.
UCMP has been stagnant for many moons it may just be time for the dog to finally bite.
???mmm |
