Banc of America said Monday it had raised its rating on Caminus Corp. (Nasdaq: CAMZ) to "strong buy" from "buy."
Shares were up 20 percent, or 3.31 to 20 Monday. The recently public company made only slight gains in its debut.
Analyst James LoGerfo said the company has a cheap relative valuation and improved earnings expectations after the recent closing of its acquisition of Nucleus Corp., which makes energy trading software systems. Caminus bought the company for $19.6 million. The company said on Aug. 31 that the purchase would likely add 5 cents to its 2001 pro forma earnings per share.
LoGerfo raised his target price on the shares to $27 from $25 and moved up earnings estimates. He now has a fiscal year 2000 estimate of 45 cents and a fiscal 2001 estimate of 60 cents.
Reuters contributed to this report.