Diamond Management & Technology Consultants, Inc. was the recipient of an upgrade from Wells Fargo (NYSE:WFC), as the giant bank upgraded the company from market perform to outperform.
Wells likes what they saw in the last quarter, as they beat analysts’ estimates handily. Diamond also increased its dividend by $0.09, with a yield of 4.2 percent, which added confidence to their view of the company, as well as the continual buying back of its stock.
Most importantly, guidance from Diamond was strong going forward, which is what most analysts are looking for more than any recent past performance.
Diamond did increase revenue by 40 percent over the same period last year, and what was impressive about that was it was organic growth, not through any mergers or acquisitions, so they are generating new business internally, which is a healthy sign for them.
Wells Fargo also increased their valuation range for Diamond from $7 – $8 to $10 – $12.