Yes, a higher PE is realistic for this company. The guidance ERES gave for the full year is ahead of Wall Street's original estimates and from the looks of bookings, earnings will be rising. This is a growth stock that supports a higher PE. Take a look at the PE's of Eresearch's competition; most are losing money and have no PE to compare. Also, the new managment is in place and there will be savings from personnel changes that won't make an immediate impact this year, but "the efficiency savings will add about $.05 in earnings per share for the full year 2008."
And more positives: ERES upped its cash position - what is it now, about $60 million? Unlike similar companies that struggle to pay their debt, ERES has plenty of cash to service their debt. Oh wait....they have no debt!