Earnings projections raised, Buy recommendation reiterated,...

Earnings projections raised, Buy recommendation reiterated, price target of $2.09 We have significantly increased our earnings forecasts after analysing the improved operating cost structure, adjusting for lower interest rates and revisiting some other assumptions that have resulted in improved margin projections. The net result is that we are now forecasting adjusted EBITDA of $23.6m for FY09, a 22% increase on our previous forecast. And this will translate into adjusted EPS of $0.03 a share.

In FY10 we now expect EPS of $0.17, placing CUS on a forward P/E of 9.9x. Our DCF valuation is $2.37 and we set our price target at $2.37 (previously $1.43).