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UBS Maintains a 'Neutral' on Molex (MOLX); Modest Reset To Price Target & Estimates

January 26, 2012 1:55 PM EST
MOLX Hot Sheet
Rating Summary:
    1 Buy, 6 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 7 | New: 26
UBS maintains a 'Neutral' on Molex Incorporated (NASDAQ: MOLX) price target raised from $24 to $26.

UBS analyst said, "Following 2Q (Dec qtr) results, we lower our ests ~8-9%. Revs for 3Q will now decline 1.5% q/q (prev. -2.5%), with Revs/EPS of $845m/$0.34 ($867m/$0.38 prev). For FY12/FY13, we foresee Revs/EPS of $3.5b/$1.58 and $3.7b/$1.73 resp., vs. $3.6b/$1.70 and $3.8b/$1.89, prev. We foresee OM of 10.8% (was 11.4%) for 3Q, and 11.9%/12.5% for FY12/FY13, resp., down from 12.3%/13.0%, previously. Btb in the Dec qtr was 0.95x, down slightly from 0.97 in the Sept qtr."

"At just under 15x CY13E PE (though 6x EBITDA), we find the risk-reward profile balanced and retain our Neutral rating. With a 3% dividend yield ($0.80/share), the stock may be attractive for income-seeking investors."

For an analyst ratings summary and ratings history on Molex Incorporated click here. For more ratings news on Molex Incorporated click here.

Shares of Molex Incorporated closed at $26.52 yesterday, with a 52 week range of $18.50-$28.51.


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