By RBC Dominion Securities. GLTA

Davis + Henderson Corporation (DH) - $18.12 – Best Idea View Remains Intact; Q2/12 Well Ahead of Forecast

Outperform, Average Risk, Price Target: $22.00 (prev: $21.00)

DH reported second quarter EBITDA of $58 million beating RBC CM’s $51 million forecast reflecting both higher-than-forecast revenues and lower-than-forecast expenses. Adjusted income per share was
.55 in Q2/12, well ahead of RBC CM
.48 forecast. RBC CM believes a dividend increase could be imminent. Lastly, DH announced its first share buyback program allowing purchases of up to 3% (1.8 million shares) of shares outstanding over the next 12 months