Barclays Maintains an 'Overweight' on Rockwell Collins (COL); EPS Guide Good; Revenues Weaker
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Price: $66.76 +0.09%
Rating Summary:
4 Buy, 6 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
4 Buy, 6 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade COL Now!
Barclays maintains an 'Overweight' on Rockwell Collins (NYSE: COL) price target of $72.00.
Barclays analyst says, "In our view, COL's initial guide can be viewed through two lenses. On one hand, the EPS guidance range encompassed current consensus, a notable positive given what in our view were negative expectations heading into the announcement. Conversely, we view the revenue guidance, especially on the government side as disappointing. Recently, management expressed confidence that their government business could "outgrow whatever the basic market is" and initial guidance seems to point to a softening on that stance. Also, by our calculations a large portion of the FY12 EPS growth is from the stepped-up buy-back, implying poorer than expected operational performance."
"We have left our FY2012 estimate at $4.45, while incorporating slight changes to our commercial assumptions as well as a negative revision to our expectation for Government Systems revenue. We've also incorporated a more aggressive share buy-back plan in our model."
For more ratings news on Rockwell Collins click here and for the rating history of Rockwell Collins click here.
Shares of Rockwell Collins closed at $49.94 yesterday, with a 52 week range of $43.82-$67.30.
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Barclays analyst says, "In our view, COL's initial guide can be viewed through two lenses. On one hand, the EPS guidance range encompassed current consensus, a notable positive given what in our view were negative expectations heading into the announcement. Conversely, we view the revenue guidance, especially on the government side as disappointing. Recently, management expressed confidence that their government business could "outgrow whatever the basic market is" and initial guidance seems to point to a softening on that stance. Also, by our calculations a large portion of the FY12 EPS growth is from the stepped-up buy-back, implying poorer than expected operational performance."
"We have left our FY2012 estimate at $4.45, while incorporating slight changes to our commercial assumptions as well as a negative revision to our expectation for Government Systems revenue. We've also incorporated a more aggressive share buy-back plan in our model."
For more ratings news on Rockwell Collins click here and for the rating history of Rockwell Collins click here.
Shares of Rockwell Collins closed at $49.94 yesterday, with a 52 week range of $43.82-$67.30.
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