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Message Boards Settings China Distance Education Holdings Limited - Quote Info
DL Downgrade by Signal Hill Research     24-Jun-09 03:12 am    
We are downgrading ATA Inc. (ATAI) and China Distance Education (DL) to Hold based on valuation and reiterate our Buy rating on ChinaCast Education (CAST).

Since initiating on ATAI with a Buy rating on March 27, the stock has jumped 135% to $9.41 from $4.00 and now trades at a CY:10 PE multiple of 28.1X, up from a multiple of 13.6X when we initiated. We believe that appropriate valuation for the company is 20-25X CY:10 EPS plus net cash, implying a valuation of approximately $8-$10 per share.

Over that same time period, China Distance Education has appreciated approximately 10% to $6.50 from $5.94, while seeing its CY:10 PE multiple rise to 25.3X from 14.6X at the time of our initiation. We believe a multiple of 20X CY:10 plus net cash is justified for a stock with an expected EPS CAGR of 35%+ over the next several years, implying a valuation of $7 per share.


Sentiment : Hold
Rating :
 (1 Rating)
Rate it:
awful/not related to \pooraveragegoodexcellent

china_bear7...

36/Male
Hong Kong


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Will wait for a pull back and take my 50+% gains. Have ...
rucksack68 Rate it 3-Jun-09 01:40 pm  
 
DL Downgrade by Signal Hill Research
china_bear7... (1 Rating) 24-Jun-09 03:12 am  
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China Distance Education Holdings Limited (DL)

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On Dec 24: 6.07 Up 0.07 (1.17%)
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