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Technology Stocks : Vitech America tackles Brazil

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To: tobin sears who wrote (119)10/17/1997 12:01:00 AM
From: Carlson   of 153
 
Tobin, I had a nice conversation with the CFO a couple days ago. He was confident that the company could meet earnings estimates of $1.19 for 1997 and $1.60 for 1998. He also thought that they could grow the business at 30% for the next 5 years. Normally, I would value a company like this at 30 times earnings;however, in my model I am discounting this by 50% to a conservative PE of 15. My target price based on this analysis is 24 for the next 12 months. If the stock backs down to 16 I would see a 50% rate of return possible.
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