Global Hunter Securities Maintains a 'Neutral' on Dresser-Rand Group (DRC); 2Q Soft On One-Time Items; 2011 Guidance Could Be A Challenge
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Price: $85.18 --0%
Rating Summary:
3 Buy, 11 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 18 | New: 11
Rating Summary:
3 Buy, 11 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 18 | New: 11
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Global Hunter Securities maintains a 'Neutral' on Dresser-Rand Group (NYSE: DRC) price target lowered from $51 to $45.
Global analyst says, "DRC posted a quarter full of one-time items which, when backed out, still produced EPS below expectations. Despite the quarter, management maintained their guidance for both segments, even increasing 2011 company bookings guidance by $300MM with contribution from Grupo Guascor. To relay such confidence in guidance, we believe management has substantial visibility through the year given the ramp that must occur to achieve this target. With respect to our model, guidance through year-end suggests a significant earnings ramp into 4Q11 (4Q EPS of $1.25 and 20% op margin). However, for 2012 we assume a lower, more normalized operations ($3.34 in EPS, 15% op margin), which indicates each of the four quarters in 2012 will produce lower EPS than in 4Q11...We believe the slope to improvement is steep and we remain Neutral on the name."
For more ratings news on Dresser-Rand Group click here and for the rating history of Dresser-Rand Group click here.
Shares of Dresser-Rand Group closed at $41.86 yesterday.
Global analyst says, "DRC posted a quarter full of one-time items which, when backed out, still produced EPS below expectations. Despite the quarter, management maintained their guidance for both segments, even increasing 2011 company bookings guidance by $300MM with contribution from Grupo Guascor. To relay such confidence in guidance, we believe management has substantial visibility through the year given the ramp that must occur to achieve this target. With respect to our model, guidance through year-end suggests a significant earnings ramp into 4Q11 (4Q EPS of $1.25 and 20% op margin). However, for 2012 we assume a lower, more normalized operations ($3.34 in EPS, 15% op margin), which indicates each of the four quarters in 2012 will produce lower EPS than in 4Q11...We believe the slope to improvement is steep and we remain Neutral on the name."
For more ratings news on Dresser-Rand Group click here and for the rating history of Dresser-Rand Group click here.
Shares of Dresser-Rand Group closed at $41.86 yesterday.
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