Jefferies Cuts Price Target & Estimates on Regal Beloit (RBC), Market Checks Indicate Weakness
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Price: $505.63 +0.20%
Rating Summary:
18 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
18 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is reaffirming its Buy rating on shares of Regal Beloit (NYSE: RBC) while lowering its price target from $80 to $78.
Market checks indicate that volumes were up in June and July while pricing stuck. Distributors highlighted that the sales mix has skewed toward lower efficiency HVAC units due to the reduction in the tax credit in 2011. The firms contractors are forecasting flat volume sales for the second half of 2011.
The firm is cutting its Q2 EPS estimate by $0.44 to $0.80, its Q3 by $0.07 to $1.25, and its Q4 by $0.08 to $0.88. Its new FY11 EPS estimate is $4.95, down from $5.17. Jefferies is also lowering its FY12 and FY13 EPS estimates by $0.22 and by $0.18 to $4.95 and $5.72.
Jefferies believes that the HVAC market is nearing the volume bottom and the mix issue will ease in 2012.
For more ratings news on Regal Beloit click here and for the rating history of Regal Beloit click here.
Shares of Regal Beloit closed at $57.99 yesterday.
Market checks indicate that volumes were up in June and July while pricing stuck. Distributors highlighted that the sales mix has skewed toward lower efficiency HVAC units due to the reduction in the tax credit in 2011. The firms contractors are forecasting flat volume sales for the second half of 2011.
The firm is cutting its Q2 EPS estimate by $0.44 to $0.80, its Q3 by $0.07 to $1.25, and its Q4 by $0.08 to $0.88. Its new FY11 EPS estimate is $4.95, down from $5.17. Jefferies is also lowering its FY12 and FY13 EPS estimates by $0.22 and by $0.18 to $4.95 and $5.72.
Jefferies believes that the HVAC market is nearing the volume bottom and the mix issue will ease in 2012.
For more ratings news on Regal Beloit click here and for the rating history of Regal Beloit click here.
Shares of Regal Beloit closed at $57.99 yesterday.
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