Wedbush Downgrades Exide Technologies (XIDE) to Underperform; Cost and Competitive Issues
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Price: $30.39 --0%
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 19
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 19
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Wedbush downgraded Exide Technologies (NASDAQ: XIDE) from Neutral to Underperform. PT slashed from $12 to $7.
Wedbush analyst said, "Downgrading Exide on a large 4Q11 miss on input cost issues significantly worse than we feared, which will likely persist as an operating challenge...Increasing junk battery input costs continue to exceed spot lead prices, significantly pressuring margins...Competitive pressures from Johnson Controls (NYSE: JCI) commissioning two new smelters in North America will likely present an additional challenge for Exide."
"We are lowering estimates to reflect margin compression on input cost escalation. Our estimates are below Exide’s FY12 $170m-$190m operating income guidance, as we believe input cost and competitive issues are intensifying." (FY11 EPS estimate cut from $0.85 to $0.69 and FY12 from $0.95 to $0.55)
For more ratings news on Exide Technologies click here and for the rating history of Exide Technologies click here.
Shares of Exide Technologies closed at $9.71 yesterday.
Wedbush analyst said, "Downgrading Exide on a large 4Q11 miss on input cost issues significantly worse than we feared, which will likely persist as an operating challenge...Increasing junk battery input costs continue to exceed spot lead prices, significantly pressuring margins...Competitive pressures from Johnson Controls (NYSE: JCI) commissioning two new smelters in North America will likely present an additional challenge for Exide."
"We are lowering estimates to reflect margin compression on input cost escalation. Our estimates are below Exide’s FY12 $170m-$190m operating income guidance, as we believe input cost and competitive issues are intensifying." (FY11 EPS estimate cut from $0.85 to $0.69 and FY12 from $0.95 to $0.55)
For more ratings news on Exide Technologies click here and for the rating history of Exide Technologies click here.
Shares of Exide Technologies closed at $9.71 yesterday.
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