Wedbush Upgrades Virco Manufacturing (VIRC) to Neutral; Improved Risk-Reward Despite End Market Challenges
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Price: $2.01 -1.47%
Rating Summary:
0 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
0 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade VIRC Now!
Wedbush upgraded Virco Manufacturing (NASDAQ: VIRC) from Underperform to Neutral with a price target of $2.50.
Wedbush analyst says, "Our upgrade on shares of VIRC is predicated on the following factors: (i) the challenging state of education spending and school budgets is well understood and likely priced into the stock; (ii) the stock’s risk-reward profile has improved though end market uncertainties and financing risks still remain; (iii) the deterioration in order rates creates modestly easier year/year comparisons as the company progresses through FY12 into FY13; and (iv) we view the cost reduction measures and suspension of the dividend as prudent. Although VIRC trades below its current book value (e.g. shareholder capital, retained earnings, comprehensive losses) of $3.31, we would remain cautious on the stock given the limited catalysts to drive top-line growth and a return to more robust profitability." (Lowers FY12 EPS estimate from (0.40) to (0.52) and FY13 for (0.07) to (0.14))
For more ratings news on Virco Manufacturing click here and for the rating history of Virco Manufacturing click here.
Shares of Virco Manufacturing closed at $2.00 yesterday, with a 52 week range of $1.62-$3.51.
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Wedbush analyst says, "Our upgrade on shares of VIRC is predicated on the following factors: (i) the challenging state of education spending and school budgets is well understood and likely priced into the stock; (ii) the stock’s risk-reward profile has improved though end market uncertainties and financing risks still remain; (iii) the deterioration in order rates creates modestly easier year/year comparisons as the company progresses through FY12 into FY13; and (iv) we view the cost reduction measures and suspension of the dividend as prudent. Although VIRC trades below its current book value (e.g. shareholder capital, retained earnings, comprehensive losses) of $3.31, we would remain cautious on the stock given the limited catalysts to drive top-line growth and a return to more robust profitability." (Lowers FY12 EPS estimate from (0.40) to (0.52) and FY13 for (0.07) to (0.14))
For more ratings news on Virco Manufacturing click here and for the rating history of Virco Manufacturing click here.
Shares of Virco Manufacturing closed at $2.00 yesterday, with a 52 week range of $1.62-$3.51.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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