DA Davidson Raises Price Target on Ceradyne (CRDN), New Contracts Increase Expectations
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Price: $35.00 --0%
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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DA Davidson is maintaining its Buy rating on shares of Ceradyne Inc. (Nasdaq: CRDN) and is raising its price target by $1 to $54.
On March 31, CRDN announced that it won a $36 million contract for an order of its XSAPI body armor, which is expected to be completed by Q3:11. The firm believes that combined with its March 3 $56.6 million ESAPI contract, the company should have no trouble reaching the top of its guidance with an EPS range of $2.35-$2.70 and a revenue range of $505-$560 million for CY11.
The company also continues to gain traction in solar. Saudi Arabia announced that it plans for 20% of its energy to come from solar power by 2030 and anticipates on investing $100 billion to make sure it happens. The firm sees CRDN's solar crucible opportunity will benefit from this.
The recent hiccup with Ceradyne's enhanced combat helmet is in the process of being solved. The company has found the problem and is working on it. DA Davidson believes that the helmet will still generate $20 million in CY11 even with a slight delay.
The firm is raising its CY11 and CY12 EPS estimates from $2.50 and $2.73 to $2.65 and $2.80. DA Davidson’s current revenue estimates are $560 million and $595 million.
On March 31, CRDN announced that it won a $36 million contract for an order of its XSAPI body armor, which is expected to be completed by Q3:11. The firm believes that combined with its March 3 $56.6 million ESAPI contract, the company should have no trouble reaching the top of its guidance with an EPS range of $2.35-$2.70 and a revenue range of $505-$560 million for CY11.
The company also continues to gain traction in solar. Saudi Arabia announced that it plans for 20% of its energy to come from solar power by 2030 and anticipates on investing $100 billion to make sure it happens. The firm sees CRDN's solar crucible opportunity will benefit from this.
The recent hiccup with Ceradyne's enhanced combat helmet is in the process of being solved. The company has found the problem and is working on it. DA Davidson believes that the helmet will still generate $20 million in CY11 even with a slight delay.
The firm is raising its CY11 and CY12 EPS estimates from $2.50 and $2.73 to $2.65 and $2.80. DA Davidson’s current revenue estimates are $560 million and $595 million.
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