Chinese Stock of the Day: Longtop Financial Technologies (NYSE:LFT)
"Strong Buy" Rated U.S.-Listed Chinese Stocks (February 17, 2012)
By Michael Liu
Shares of Longtop Financial Technologies (NYSE:LFT) surged 8.1% on Monday, as the company announced a contract extension with a national commercial bank in China, and Needham & Co. upgraded the stock from Buy to Strong Buy on attractive valuation.
According to the contract, Longtop will continue to provide software testing services, which include load and stress, reliability testing, user acceptance testing, defect follow-up management and overall testing, of the bank's next generation core banking system.
Longtop (NYSE:LFT) shares are up 62% year-to-date, ranking 35th among all U.S.listed Chinese stocks (Full Ranking). Analysts' average price target on LFT is $29.43, implying 20% upside from the current level. On average, wall street analysts are expecting the company's revenue and EPS to rise 24.6% and 16.3% in the fiscal year ended March 2011. All seven analysts covering LFT have a positive rating on the stock.
Longtop is a leading software development and solutions provider targeting the financial services industry in China. Longtop develops and delivers a comprehensive range of software applications and solutions with a focus on meeting the rapidly growing IT needs of the financial services institutions in China. Longtop has six solution delivery centers, three research and development centers and seventy-five ATM service centers located in 27 provinces throughout China.
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