Buy - Price 4.99 on Jan. 13
by Roth Capital Partners

Ciber is a pure-play system-integration consultancy that serves private- and government-sector clients. CBR [has] closed the Iteamic acquisition, which strengthens its offshore-delivery capability....We view the closing of the deal...as a sign that CBR's financial position, including its $200 million revolving credit facility with Wells Fargo, remains healthy. Maintaining Buy rating but lowering estimates and price target to $8 from $9, due to unfavorable [foreign-exchange rates] and deteriorating macroenvironment. Our valuation is based on a discounted cash flow that assumes the following over a 10-year period: a 2.6% compounded annual revenue growth rate; improvement in pretax margins to 6% from 4% in 2008; and a 10.4% discount rate. We have reduced our '09 revenue and EPS estimates to $1.14 billion and 52 cents from $1.21 billion and 57 cents. The downward revision is driven by the free fall in the British pound and, to a lesser extent, the euro, which are down 17.5% and 7.3% from the end of Q3. Market cap: $300 million.

Upgraded by AG Edwards from Hold to Buy

90,766

used to work in that business