Jefferies Raises Price Target on Dynamic Materials (BOOM), Maintains Hold Rating

March 3, 2011 9:36 AM EST
Get Alerts BOOM Hot Sheet
Price: $14.80 --0%

Rating Summary:
    6 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Jefferies is maintaining their Hold rating on shares of Dynamic Materials (NASDAQ: BOOM) as the company reported their 4Q results inline with what they were expecting and based on their belief that they are currently fairly valued. They are raising their price target on the company to $25 from $16.

The firm believes that the company's growing backlog shows a sign that business are hitting the turning point and going up. BOOM reports that they have been receiving new orders in a combination of sectors, but their main ones are chemical and alternative energy in business.

The company's outlook doesn't have any major deals or news in its future but is still solid as current market trends are expected to continue well into 2011 and into 2012. Jefferies states that BOOM should continue to show improving margins as time goes on. They are reiterating their FY11 EPS estimate of $0.80 and are initiating their FY12 at $1.20.

BOOM reported a total revenue of $44.8 million for their 4Q10 when the firms estimate was $41.2 million. They comment that the upside was in the oilfield products as they were the best performing business in 2010 benefiting from a higher rig count and increased oil and gas drilling.

For more ratings news on Dynamic Materials click here and for the rating history of Dynamic Materials click here.

Shares of Dynamic Materials closed at $25.52 yesterday.

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