UBS Downgrades CaesarStone Sdot-Yam (CSTE) to Neutral; Uncertainties Persist
- Wall Street surges to new highs; transports set record
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- After-Hours Stock Movers 12/07: (VYGR) (LULU) (HRB( Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
UBS downgraded CaesarStone Sdot-Yam (NASDAQ: CSTE) from Buy to Neutral with a price target of $30.00 (from $50.00) as uncertainties persist.
Analyst Susan Maklari commented, "Following 3Q results, we are taking a more guarded stance on Caesarstone. Our view reflects: 1) the extensive nature of the changes underway in its US operations from a sales and marketing perspective as well as the ramp up of its Richmond Hill facility and 2) the impact of greater competition from lower cost, overseas producers and what this will mean from a growth and profitability perspective over time. Although we believe the company will be successful in its efforts, this is likely to take time, delaying the impact to results relative to our initial expectations. We note that despite our more cautious near-term view and greater presence of imports, we remain committed to the longer-term value of Caesarstone's brand and believe its higher end offerings have a place in the market as quartz realizes greater acceptance among consumers."
Reflecting guidance 2016E EPS goes to $2.25 from $2.55 as 2016 revenues are now +6% from +11% (driven by the US at -2% from +6%) and EBIT margin goes to 18% from 20%.
Shares of CaesarStone Sdot-Yam closed at $27.80 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Credit Suisse Downgrades NetApp (NTAP) to Underperform
- RBC Capital Downgrades Concordia Healthcare (CXRX) to Underperform, $1 PT
- Western Digital (WDC): Raising PT After Analyst Day - Baird
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Downgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!