S&P Upgrade details...lowered their price target from $23 to $21...but that's to today's overreaction selloff, S&P upgrades from Hold to BUY. Their new price target is 27% more than the current price.
Excluding charges, Apr-Q EPS of $0.28, vs. $0.28, is $0.04 lower than both our estimate and consensus from Capital IQ (an entity that operates independently of S&P Equity Research). We expect economic challenges to persist, with near-term margin pressure. We are lowering our FY 12 (Jan.) and FY 13 EPS estimates to $1.39 and $1.59 from $1.53 and $1.69, and are trimming our DCF-based target price by $2 to $21. However, we think today's selloff has been overdone, and believe shares are now attractive at about 12X our FY 12 EPS forecast, significant discount to historical averages.