Wedbush Downgrades Ceradyne (CRDN) to Neutral; Lofty Street Expectations & No Material Near-term Catalysts
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Price: $35.00 --0%
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush downgraded Ceradyne (NASDAQ: CRDN) from Outperform to Neutral. PT lowered from $54 to $42.
Wedbush analyst says, "Our downgrade of Ceradyne (CRDN) is predicated on the following: (i) FY12 consensus expectations exceed what we view as a sustainable level of earnings given market fundamentals; (ii) margin pressure and reduced demand continue to impact the solar business, all of which could extend through the end of the year; (iii) recent flow of body armor delivery orders suggests that FY12 defense revenue could drop $100 million versus 2011 levels if no additional body armor orders materialize; (iv) delays in the ballistic testing process increases the uncertainty behind the timing of and contribution from its enhanced combat helmet (ECH) product; and (v) visibility of contribution from new commercial products, such as sand screens in the energy markets, remains insignificant. With 2012 EPS estimated to be tracking near $2.70, shares could trade sideways until improved visibility on new contract award(s) improves or incremental catalysts emerge."
For more ratings news on Ceradyne click here and for the rating history of Ceradyne click here.
Shares of Ceradyne closed at $38.92 yesterday.
Wedbush analyst says, "Our downgrade of Ceradyne (CRDN) is predicated on the following: (i) FY12 consensus expectations exceed what we view as a sustainable level of earnings given market fundamentals; (ii) margin pressure and reduced demand continue to impact the solar business, all of which could extend through the end of the year; (iii) recent flow of body armor delivery orders suggests that FY12 defense revenue could drop $100 million versus 2011 levels if no additional body armor orders materialize; (iv) delays in the ballistic testing process increases the uncertainty behind the timing of and contribution from its enhanced combat helmet (ECH) product; and (v) visibility of contribution from new commercial products, such as sand screens in the energy markets, remains insignificant. With 2012 EPS estimated to be tracking near $2.70, shares could trade sideways until improved visibility on new contract award(s) improves or incremental catalysts emerge."
For more ratings news on Ceradyne click here and for the rating history of Ceradyne click here.
Shares of Ceradyne closed at $38.92 yesterday.
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