Zoltek (ZOLT) Has Significant Catalysts on Horizon, Says Analyst

December 4, 2012 10:37 AM EST
Get Alerts ZOLT Hot Sheet
Price: $16.73 --0%

Rating Summary:
    1 Buy, 1 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 29 | Down: 30 | New: 23
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Despite reporting earnings that missed estimates last month, carbon fiber materials company Zoltek's (NASDAQ: ZOLT) stock appears stable, though it trades lower year-to-date.

Commenting on developments, analyst Michael Lew of Needham and Company said "While the financial results appear to be reflective of the near-term challenges in the wind market, we believe investor emphasis should be placed on the potential catalysts on the horizon for ZOLT."

Among those catalysts is the rollout of a lower-cost carbon fiber (CF) and ongoing efforts with Magna to develop lighter weight components for the auto industry.

"Our focus is on the lower cost lignanbased CF material (being developed with Weyerhaeuser) that seems to be on track to become commercially available in 2013. A lower-cost precursor material could provide the company with a significant advantage over competitors that also produce industrial grade CF. It could facilitate further penetration into other markets such as compressed natural gas tanks and auto," said Lew.

He also said the company's partnership with Magna Exteriors & Interiors seems to be progressing and should be of significant importance to automakers as it provides an avenue to reduce vehicle weight.

Needham & Company maintained a Buy rating on Zoltek Companies, but lowered its price target to $9.00 (from $10.00).

For an analyst ratings summary and ratings history on Zoltek Companies, Inc. (NASDAQ: ZOLT) click here. For more ratings news on Zoltek Companies, Inc. click here.

Shares of Zoltek Companies, Inc. closed at $7.15 yesterday.

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