Camelot Information Systems (NYSE:CIS) Should Continue Strong

Camelot Information Systems (NYSE:CIS) should continue to grow strong as they continue to manage costs well and growth trends in the ERP market continue. Barclays (NYSE:BCS) reiterates their "Overweight" rating on them as a result.

Barclays said, "We believe solid organic growth of 45% demonstrates both strong secular growth trends in the ERP market and increased traction in the company's branch automation and risk management products for financial clients, with management's updated outlook for 58% FY 2010 growth (and our estimate of 60% growth) likely still very conservative, even when accounting for normalizing of some pent-up demand in EAS and the anniversary of a meaningful FIS acquisition next quarter. Additionally, while we do see wage inflation as a potential risk to watch (although the company has maintained strong cost control thus far), we expect continued benefits from mix shift going to higher-margin services to support strong earnings growth going forward."

Camelot closed Friday at $17.66. Barclays has a price target of $21 on them, raising it from $19.