NaviSite initiated with “outperform” - update

08/31/07 - RBC Capital Markets

NEW YORK, August 31 (newratings.com) – Analysts at RBC Capital Markets initiate coverage of NaviSite Inc (NAVI) with an "outperform" rating. The target price is set to $10.

In a research note published this morning, the analysts mention that rising demand for software services, IT outsourcing, web-based applications, and digital content management and delivery is expected to fuel the company’s growth going ahead. NaviSite has attractive operating leverage, since a large portion of its costs is fixed, enabling the company to expand its customer base and service offerings without a significant increase in costs, the analysts say.