Research report on Financial Engines

Today we published a research report on Financial Engines. It suggests that the company is in a strong position to take advantage of several trends that are actively reshaping the financial landscape.

Based on an intrinsic valuation model, the shares still appear reasonably valued. Due to strong economies of scale the company management team can execute their way to much higher valuations if they can drive the top line faster than they have in the past. Operating margins should expand with revenue growth. This could materially revise the IV estimate upward if they can do it.

The research report is available in the reports section. (The report was developed by Research 2.0.)

The first glimpse will occur on May 11th when the company reports their first quarter as a public company. We’ll post an update with more links to helpful resources for investors after the report.

[Disclosure: None.]

1 Comment

  1. Landshark on 06/15/2010 at 5:25 pm

    On May 11th the company reported a mixed quarter. Goldman initiated with a neutral and Piper initiated with an Overweight and a $21 PT. Both introduced coverage on April 26th before the quarterly report. No change to our IV estimate of $18.

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