Update: EPIQ Systems Q3 Earnings Disappoint But Takeover Speculation Controls The Stock Price
Martin Vlcek • Today, 10:39 AM
- EPIQ Systems posted weak Q3 sales but robust cash flow YTD amid continued weakness in bankruptcy filings and eDocument services.
- The long thesis continues to work well and the stock is up ~40% in a year. However, my target price was exceeded due to an unexpected hostile takeover bid.
- I confirm my long thesis and raise my target price to $21 based on the takeover speculation. However, fundamental value is ~$17 per share, so downside should be protected.