Kaufman Raises Price Target on EnerSys (ENS), Acquisitions and Performance Offer Upside
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Price: $90.99 +0.67%
Rating Summary:
8 Buy, 5 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
8 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Kaufman Bros. is reiterating its Buy rating on shares of EnerSys (NYSE: ENS) while raising its price target from $35 to $36.
The company reported strong Q2 results with a 16 percent increase in sales and 8 percent increase in volumes. Surprisingly, ENS's Americas, European, and Asian markets rose by 14 percent, 18 percent, and 12 percent. Management also noted that worldwide industrial truck orders remain strong as they grew 18 percent.
The firm highlights that ENS's three acquisitions/joint venture during the quarter will generate over $100 million in additional revenue during the next 12 months, which is substantial since it only cost the company $40 million in total. Kaufman gives the company credit for making over 25 acquisition since 2000, all of which have turned out to be accretive to earnings.
An analyst at Kaufman comments, "Management's tone was substantially more positive as compared to last quarter, and we believe acquisitions in new territories could provide upside to our forecasts. We continue to believe that ENS is in the best position to operate in changing macro environments as it continues to expand it's customer base, increase market share, and move into new regions and technologies, while still maintaining a strong balance sheet."
For 2012, Kaufman is increasing its sales and EPS forecast from $2.19 billion and $2.69 to $2.27 billion and $2.75. For 2013, the firm currently estimates $2.55 billion in sales and earnings of $3.27 per share.
For an analyst ratings summary and ratings history on EnerSys click here. For more ratings news on EnerSys click here.
Shares of EnerSys closed at $26.22 yesterday.
The company reported strong Q2 results with a 16 percent increase in sales and 8 percent increase in volumes. Surprisingly, ENS's Americas, European, and Asian markets rose by 14 percent, 18 percent, and 12 percent. Management also noted that worldwide industrial truck orders remain strong as they grew 18 percent.
The firm highlights that ENS's three acquisitions/joint venture during the quarter will generate over $100 million in additional revenue during the next 12 months, which is substantial since it only cost the company $40 million in total. Kaufman gives the company credit for making over 25 acquisition since 2000, all of which have turned out to be accretive to earnings.
An analyst at Kaufman comments, "Management's tone was substantially more positive as compared to last quarter, and we believe acquisitions in new territories could provide upside to our forecasts. We continue to believe that ENS is in the best position to operate in changing macro environments as it continues to expand it's customer base, increase market share, and move into new regions and technologies, while still maintaining a strong balance sheet."
For 2012, Kaufman is increasing its sales and EPS forecast from $2.19 billion and $2.69 to $2.27 billion and $2.75. For 2013, the firm currently estimates $2.55 billion in sales and earnings of $3.27 per share.
For an analyst ratings summary and ratings history on EnerSys click here. For more ratings news on EnerSys click here.
Shares of EnerSys closed at $26.22 yesterday.
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