Needham & Company Reiterates a 'Buy' on Sypris Solutions (SYPR); Mixed Q2 With Strong Recovery In Industrial Business Offset By Lingering DoD Budget Issues

Needham & Company reiterates a 'Buy' on Sypris Solutions (NASDAQ: SYPR) price target of $6.00.

Needham analyst says, "SYPR reported stronger than expected Q2 revenues, as robust growth in the company’s Industrial Group offset a weaker showing in the company’s Aerospace & Defense business, due to delayed DoD spending. EPS came in below expectations reflecting weaker than expected gross margins in the A&D business while margins in the Industrial Group reached their highest levels in 7 yrs. Stepped up production in the commercial truck and trailer markets bodes well for continued strength in the Industrial Group, while A&D should improve gradually over the balance of the year. At 4x EV/estimated 2011 EBITDA, SYPR remains an attractive value for micro-cap investors, in our view."

"We are increasing our 2011 revenue estimate to $329M from $314M but have lowered our EPS estimate to loss of $0.05 from a profit of $0.12, which takes a more cautious view of the A&D business in 2H. We are maintaining our 2012 EPS estimate at $0.30. We estimate EBITDA at $18M in 2011 and $24M in 2012."

For more ratings news on Sypris Solutions click here and for the rating history of Sypris Solutions click here.

Shares of Sypris Solutions closed at $3.46 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Coherent (COHR) PT Raised to $420 at Needham
• TSS Inc (TSSI) PT Lowered to $13 at Needham
• Needham Reiterates Buy Rating on WhiteFiber Inc (WYFI)