ORLANDO, Fla., March 14, 2007 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, announced today that it has initiated research on INX, Inc. (Nasdaq:INXI).
Joe Blankenship, MBA, CFA Level I Candidate, RedChip Research Analyst, wrote in the report:
"INXI's recently reported results have demonstrated the ability to improve margins and appear to have the consistency of profitability not shown in prior years. The Company has set definitive targets for operating margins between 4 percent and 7 percent, which we believe are achievable. For the quarter ended December 31, 2006, the Company had a 1.9 percent operating margin, but that was greatly improved from a negative margin in the comparable year period.
"While our public company comps provide no similar Cisco installers, we have used Cisco (Nasdaq:CSCO) as a guide for our target price. Cisco is currently priced at close to 17.0 times its 2008 estimated earnings per share. Because of the much higher growth rates for INXI and the realistic expectation of expanding margins, we are using a 20 times 2008 EPS estimates to establish a twelve-month price target of $14.00 per share.
"INXI has exhibited a moderately escalating stock price over the past year (if you can call 41.8 percent moderate), while most of its peers have not kept pace. It is our view that improving financial performance has the prospect of continuation of that trend, and we feel that patient investors will be rewarded over the next year with INXI shares."
To receive a complimentary copy of the RedChip Independent initiation research for INXI, please visit: http://www.redchip.com/independent/subscriber.asp?page=requestINXI_initial.
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RedChip Independent Research Disclosure
The analysts contributing to this INXI RedChip report do not hold any shares of INXI. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the INXI RedChip report. Additional information on the securities mentioned in this report is available upon request. This INXI RedChip report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the INXI RedChip report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. INXI is not a client of RedChip Companies, Inc., or any of its affiliates.