Hold - Price 2 on May 13
by Sterne Agee

Raised rating from Sell. Rodman's 1Q08 operating loss was 10 cents, versus our Street low estimate of a penny loss. While earnings lumpiness might still plague this young company, RODM has a fundamentally well-run franchise in a defined niche [as]...investment-banker to the capital-intensive biotechnology sector....It has exhibited better control over expenses amid declining revenues than larger peers....Our target of 2 [uses] a 0.8 times price-to-tangible book discount to estimated book value of $1.78. Our new '08 operating estimate is a loss of six cents, down from a loss of 4 cents, taking into account the quarter's miss [but] better revenue growth and expense control over next three quarters. Our new '09 estimate is [a positive] six cents. Market cap: $70 million.