Korn/Ferry International "outperform," target price raised

12/09/05 - Robert W. Baird

NEW YORK, December 9 (newratings.com) - Analysts at Robert W Baird reiterate their "outperform" rating on Korn/Ferry International (KFY), while raising their estimates for the company. The target price has been raised from $23 to $25.

In a research note published this morning, the analysts mention that the company has reported its F2Q EPS marginally short of the estimates and in-line with the consensus. Korn/Ferry International has projected its FQ3 EPS and revenues at $0.25-0.29 and $125-130 million, respectively, ahead of the earlier estimates. The company has initiated a $50 million share buyback programme, which is likely to be accretive to its FY07 EPS by approximately $0.05-0.06, the analysts say. The EPS estimates for FY06 and FY07 have been raised from $1.07 to $1.09 and from $1.24 to $1.27, respectively.