UPDATE: Bank Of America Reiterates On The Advisory Board Company On Royall Acquisition Deal

Courtesy of Benzinga.

In a report published Thursday, Bank of America analyst Robert M. Willoughby reiterated a Buy rating on The Advisory Board Company (NASDAQ: ABCO), and raised the price target from $63.00 to $65.00.

In the report, Bank of America noted, “ABCO will acquire Royall & Company, the leading provider of data-driven student engagement and enrollment management solutions to colleges and universities, for cash ($750 million) and stock ($100 million). The transaction is expected to close in January 2015. We are raising our CY15 adj. EPS estimate to $1.42 (from $1.27) on the expected accretion and higher conviction in profit margin leverage possible next year for its existing health care business on reduced dilution from recent acquisitions. Our P.O. moves to $65 (from $63) on the higher view.”

The Advisory Board Company closed on Wednesday at $37.76.

Posted-In: Bank of America Robert M. WilloughbyAnalyst Color Price Target Analyst Ratings