Needham & Company Reiterates a 'Buy' on Sypris Solutions (SYPR); Mixed Q2 With Strong Recovery In Industrial Business Offset By Lingering DoD Budget Issues
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Price: $1.73 --0%
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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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.
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.
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