RedChip Visibility, a division of RedChip Companies, Inc., yesterday announced its initiation of coverage on NetSol Technologies Inc., a developer and implementer of global business services and enterprise application solutions.

Bill Matson, CFA, RedChip Research Analyst, stated, “NetSol’s global footprint, low labor costs, proven quality, and software with the ability to consolidate an unprecedented variety of global IT functions in one location for credit-based businesses have allowed the Company to build a diversified blue chip client base.”

“While approximately 60% of NetSol’s revenues are currently derived from its NetSol Financial Suite(TM), it must be noted that the Company is involved in varying degrees with several initiatives that could ultimately surpass the scale of its business with credit-based businesses. These opportunities include defense, health care, land records management, property and casualty insurance, and SAP-compatible software.”

Matson added, “Trading close to its GAAP book value and at what we believe is an unreasonably low 6.3x projected fiscal 2011 earnings, we are initiating coverage of NTWK with a Strong Buy rating and a price target of $3.00.”

Investors interested in receiving a complimentary copy of the RedChip Visibility Initial Research Report for NTWK should visit: http://www.redchip.com/about/aboutmain.asp?rid=252