FBR Capital Upgrades Ladish Co. (LDSH) to Outperform; Valuation Compelling
LDSH Hot Sheet
Rating Summary:0 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
FBR Capital upgrades Ladish Co. (Nasdaq: LDSH) from Market Perform to Outperform. Price target $14.
FBR analyst says, "Ladish's end markets appear to be bottoming out, but there are still strong headwinds that the company needs to contend with. That being said, the company is currently trading at a significant discount to book value; and, as we outline in this report, we do not think a material write-down is imminent...The company currently has an accounting book value of $14.15 and goodwill and intangible asset balances of $57.17 million. If we assume that Ladish's normalized tax rate is 35.0% (if the company wrote off its entire goodwill and intangible asset balances), LDSH's book value would drop from $14.15 to $11.82, which is lower than the company's current stock price but only represents a low-single-digit percentage downside...We do think 4Q09 estimates are too high. The current consensus for 4Q09 calls for revenues of $89.0 million and EPS of $0.08, versus our estimates for revenues of $76.4 million and $0.05 in earnings. We do think that our numbers might be a little light, but we also think the consensus is a bit too high. Keep in mind that the bottoming process is just starting, so we think the consensus estimate that is calling for 17.1% sequential top-line growth this early in the process is too aggressive."
To see more analyst ratings on LDSH Click Here.
Ladish Co., Inc. engages in the engineering, production, and marketing of forged and cast metal components for various load-bearing and fatigue-resisting applications in the jet engine, aerospace, and industrial markets.
FBR analyst says, "Ladish's end markets appear to be bottoming out, but there are still strong headwinds that the company needs to contend with. That being said, the company is currently trading at a significant discount to book value; and, as we outline in this report, we do not think a material write-down is imminent...The company currently has an accounting book value of $14.15 and goodwill and intangible asset balances of $57.17 million. If we assume that Ladish's normalized tax rate is 35.0% (if the company wrote off its entire goodwill and intangible asset balances), LDSH's book value would drop from $14.15 to $11.82, which is lower than the company's current stock price but only represents a low-single-digit percentage downside...We do think 4Q09 estimates are too high. The current consensus for 4Q09 calls for revenues of $89.0 million and EPS of $0.08, versus our estimates for revenues of $76.4 million and $0.05 in earnings. We do think that our numbers might be a little light, but we also think the consensus is a bit too high. Keep in mind that the bottoming process is just starting, so we think the consensus estimate that is calling for 17.1% sequential top-line growth this early in the process is too aggressive."
To see more analyst ratings on LDSH Click Here.
Ladish Co., Inc. engages in the engineering, production, and marketing of forged and cast metal components for various load-bearing and fatigue-resisting applications in the jet engine, aerospace, and industrial markets.
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