HURN - Digital Rebound Expected; Long-Term Story Unchanged

研报英文原文证据摘录

HURN - Digital Rebound Expected; Long-Term Story Unchanged

Truist Securities

Company Description

Huron Consulting Group Inc. (HURN) is an independent specialty consulting company that provides financial and operational consulting

services in the United States. The Financial Consulting segment provides highly specialized financial and economic analysis and advice

to assist clients in addressing complex challenges arising from litigation, disputes, investigations, regulation, financial distress and other

sources. The Operational Consulting segment provides services that help clients improve the overall efficiency and effectiveness of their

operations by enhancing revenue, reducing costs, managing regulatory compliance and maximizing procurement efficiency. Business

practice areas include: Financial Service Sector, Health and Education Consulting, and Corporate Consulting.

Investment Thesis

Positioned well in the attractive areas of healthcare and education, Huron continues to win more than its fair share of consulting work

in two dynamic areas experiencing regulatory changes and significant cost pressures. Clients in these areas need consulting services

in many forms, and with the exception of some timing volatility in success fees, the firm has continued to outperform. Our impression of

management is favorable and attrition rates have been low and complemented by small strategic acquisitions. We rate the shares Buy.

Valuation and Risks

HURN Valuation:

We value HURN shares based on forward price-to-earnings and EV/EBITDA multiples.

The ten-year historical EV/EBITDA multiple for HURN is 11x. Assuming HURN’s multiple trends to 10.9x EV/EBITDA, in-line with the

historical multiple, we use our 2027 adj. EBITDA estimate of $309M to arrive at a $155 price target.