DA Davidson Starts A.T. Cross Company (ATX) at Buy, Growth Potential Not Fully Priced In
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Price: $21.49 --0%
Rating Summary:
1 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
1 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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DA Davidson initiates coverage on shares of A.T. Cross Company (NASDAQ: ATX) with a Buy rating and $16 price target.
The firm believes that Costa could be a $100 million eyewear brand following last years revenue of $50 million.
Due to the company's restructuring plan finally taking effect, DA Davidson is forecasting major margin expansion. It notes that with incremental operating profit margins reaching over 40 percent, it believes segment operating margin can reach the high single digits.
The firm is introducing its estimates for Q2 revenue and EPS at $46.7 million and $0.21, while its 2011 estimates call for $176.8 million in revenue and $0.61 in earnings. DA Davidson's 2012 estimates are set at $192.8 million and $0.82.
An analyst at the firm comments, "We do not believe ATX shares adequately reflect Costa’s growth prospects, or the material improvements that have occurred with the Cross writing instrument business."
For more ratings news on A.T. Cross Company click here and for the rating history of A.T. Cross Company click here.
Shares of A.T. Cross Company closed at $12.27 yesterday.
The firm believes that Costa could be a $100 million eyewear brand following last years revenue of $50 million.
Due to the company's restructuring plan finally taking effect, DA Davidson is forecasting major margin expansion. It notes that with incremental operating profit margins reaching over 40 percent, it believes segment operating margin can reach the high single digits.
The firm is introducing its estimates for Q2 revenue and EPS at $46.7 million and $0.21, while its 2011 estimates call for $176.8 million in revenue and $0.61 in earnings. DA Davidson's 2012 estimates are set at $192.8 million and $0.82.
An analyst at the firm comments, "We do not believe ATX shares adequately reflect Costa’s growth prospects, or the material improvements that have occurred with the Cross writing instrument business."
For more ratings news on A.T. Cross Company click here and for the rating history of A.T. Cross Company click here.
Shares of A.T. Cross Company closed at $12.27 yesterday.
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