Monday, KeyBanc Capital initiated coverage of EPIQ Systems Inc. (EPIQ) stock with a Hold rating. The brokerage established its 2009 EPS estimate of $0.69, and its 2010 estimate of $0.84.
Analyst Steven Koenig noted that EPIQ Systems is a relatively under-followed name that should benefit greatly from the rapid growth in corporate restructurings and liquidations. Bankruptcy solutions comprise about one-third of EPIQ's revenue but are growing rapidly in the mix.
The analyst said that the company's competitive position in this segment looks fairly secure, and the multi-year duration of many engagements provides a "long tail" for growth even following an economic recovery.
Despite these positives, the investment potential for EPIQ shares looks average to the analyst due to valuation and the less attractive fundamentals of EPIQ's other two business segments.
The analyst said that settlement administration is likely a mid single-digit grower and has relatively low margins due to its service-intensive nature, while the e-discovery market is seeing long-term pricing and margin pressure from increased competition and a dramatic deceleration due to macroeconomic weakness.
EPIQ shares trade at a significant premium to software peers (2010 estimated EV/free cash flow of 21x vs. 11x), which the analyst thinks fairly reflects his outlook for above average near to medium-term growth. The analyst rate EPIQ shares Hold.
Currently, EPIQ is down $0.11 or 0.77% and trading at $14.23.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.