KeyBanc Starts ESCO Technologies (ESE) at Buy, Attractive Take-Out Candidate for U.S. and European Industrial OEMs
ESE Hot Sheet
Rating Summary:4 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
KeyBanc initiates coverage on shares of ESCO Technologies (NYSE: ESE) with a Buy rating and $45 price target.
The firm reports that it's buy rating reflects the company's earnings trajectory of 20 percent EPS CAGR between 2011 and 2014, its top-tier management team, and attractive valuation.
The company has become the leading provider of communications networks to gas and water utilities and electric co-op/municipal customers. ESE has also experienced a five-year EPS CAGR of 11 percent through the recent recession between 2006 and 2011. A recent win at Socal Gas is an example of its strong market position and should help accelerate its growth profile.
KeyBanc forecasts that ESE will post 19 percent year-over-year growth for 2011, 10 percent growth in 2012, and 32 percent growth in 2013. The firms current EPS estimates for 2011, 2012, and 2013 are $2.00, $2.20, and $2.89.
An analyst from the firm notes, "We see roughly 4x more upside potential vs. downside risk to shares (when looking out 12-18 months from today) and believe ESCO is an attractive take-out candidate for U.S. and European industrial OEMs."
For more ratings news on ESCO Technologies click here and for the rating history of ESCO Technologies click here.
Shares of ESCO Technologies closed at $35.59 yesterday, with a 52 week range of $24.55-$43.15.
Discover Wall Street's best ratings calls with the pros - Upgrade to Ratings Insider Elite. Free Trial!
The firm reports that it's buy rating reflects the company's earnings trajectory of 20 percent EPS CAGR between 2011 and 2014, its top-tier management team, and attractive valuation.
The company has become the leading provider of communications networks to gas and water utilities and electric co-op/municipal customers. ESE has also experienced a five-year EPS CAGR of 11 percent through the recent recession between 2006 and 2011. A recent win at Socal Gas is an example of its strong market position and should help accelerate its growth profile.
KeyBanc forecasts that ESE will post 19 percent year-over-year growth for 2011, 10 percent growth in 2012, and 32 percent growth in 2013. The firms current EPS estimates for 2011, 2012, and 2013 are $2.00, $2.20, and $2.89.
An analyst from the firm notes, "We see roughly 4x more upside potential vs. downside risk to shares (when looking out 12-18 months from today) and believe ESCO is an attractive take-out candidate for U.S. and European industrial OEMs."
For more ratings news on ESCO Technologies click here and for the rating history of ESCO Technologies click here.
Shares of ESCO Technologies closed at $35.59 yesterday, with a 52 week range of $24.55-$43.15.
Discover Wall Street's best ratings calls with the pros - Upgrade to Ratings Insider Elite. Free Trial!
You May Also Be Interested In
- UPDATE: Capstone Starts Facebook (FB) at Hold as Premium Multiple Not Justified
- UPDATE: Stein Mart (SMRT) Reports Q1 Adj-EPS of 32c, Beats by 2c
- UPDATE: Youku.com (YOKU) Misses Q1 EPS by 1c; Sees Q2 Sales Up 90-100% YoY
Create E-mail Alert Related Categories
New CoverageRelated Entities
KeyBanc, EarningsSign 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!
