Gevity HR "market outperform," target price reduced

09/20/06 - JMP Securities

NEW YORK, September 20 (newratings.com) - Analysts at JMP Securities reiterate their "market outperform" rating on Gevity HR Inc (GVHR), while reducing their estimates for the company. The target price has been reduced from $29 to $26.

In a research note published this yesterday, the analysts mention that the company appears well positioned for robust earnings growth over the next two to three years, helped by an expansion of its client base, service price hikes and operating leverage. The analysts add, however, that Gevity HR is taking longer than was earlier expected to record growth. The company has reduced its EPS guidance for 3Q and FY06 from $0.36-$0.38 to at least $0.27 and from $1.43-$1.47 to at least $1.31. The EPS estimates for FY06 and FY07 have been reduced from $1.45 to $1.31 and from $1.75 to $1.50, respectively.