MARKET TALK: Panmure Downgrades SDL To Hold From Buy

15th Jul 2010 12:33

1133 GMT [Dow Jones] Panmure Gordon downgrades SDL (SDL.LN) to hold from buy and raises target price to 513p from 512p. This follows Thursday's acquisition of company Language Weave, which moves SDL's price-to-earnings ratio to 16.8x, says Panmure. Sees the deal as dilutive although says that 3.2x reported EV/sales is the correct valuation. Panmure lowers 2011 EPS estimate to 31.4p from 32.2p but increases '12 EPS to 36.9p from 34.4p. Concurs with SDL's view that the digital universe is set to rise tenfold in the next five years and this expansion will be across the globe. Shares +1.9% at 513p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 15, 2010 07:33 ET (11:33 GMT)