FTI Consulting, Inc. (NYSE:FCN)

CAPS Rating: 3 out of 5

The Company is a global consulting firm to organizations confronting the critical legal, financial and reputational issues.

Recs

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Player Avatar ValueMonkey (94.37) Submitted: 11/12/2008 4:03:11 AM : Outperform Start Price: $42.82 FCN Score: -146.80

Price target of $52 to $67. Shares recently reacted negatively to FCN's first earnings miss and a downward revision of FY2008 guidance after years of stellar execution (the shares are down ~27% since 11/5/08). Recent ‘unprecedented’ market events caused business disruptions and client engagement cancellations. Management also announced the push out of the IPO of its Technology business into 2009 and reduced FY2008 guidance. However, the equity price will recover as the market digests the broader opportunities for FCN that will arise from the same market dislocation that caused the temporary setback in earnings. The financial crisis will accelerate restructuring and litigation activity more broadly and for longer, translating into more sustained earnings growth for FCN. Management noted that pipeline activity is accelerating, but cautioned on potential further dislocations in Europe.

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