Barrington Research Upgrades KAR Auction (KAR) to Outperform on Acquisition of OPENLANE
Tweet
Share
E-mailGet Alerts KAR Hot Sheet
Price: $30.88 --0%
Rating Summary:
8 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 17 | New: 20
Rating Summary:
8 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 17 | New: 20
Join SI Premium – FREE
Barrington Research upgraded shares of KAR Auction (NYSE: KAR) to an Outperform rating today following its announcement on August 15 to acquire OPENLANE.
The company believes that the acquisition will generate around $100 million in revenue in 2011 while selling roughly 300 thousand automobiles. In 2012, KAR forecasts that it will contribute $20-$25 million of adjusted EBITDA due to synergies expected to be realized upon the integration of the businesses.
The firm notes that the acquisition may increase the total amount of its wholesale unit volume processed by over 18 percent and should add around $0.02-$0.03 per share in earnings for 2011. For 2012 they are forecasting an additional $0.05-$0.6 per share in earnings to be added.
Barrington Research raised its 2011 and 2012 EPS estimate from $1.20 and $1.25 to $1.22 and $1.30. The company's guidance ahead of the acquisition announcement was $1.20-$1.25 for fiscal 2011.
KAR will be releasing its Q4 results on August 24 following the closing bell with a conference scheduled at 4:00 pm CT that same day.
Shares of KAR are currently trading up $0.53 or 3.77 percent to $14.60.
The company believes that the acquisition will generate around $100 million in revenue in 2011 while selling roughly 300 thousand automobiles. In 2012, KAR forecasts that it will contribute $20-$25 million of adjusted EBITDA due to synergies expected to be realized upon the integration of the businesses.
The firm notes that the acquisition may increase the total amount of its wholesale unit volume processed by over 18 percent and should add around $0.02-$0.03 per share in earnings for 2011. For 2012 they are forecasting an additional $0.05-$0.6 per share in earnings to be added.
Barrington Research raised its 2011 and 2012 EPS estimate from $1.20 and $1.25 to $1.22 and $1.30. The company's guidance ahead of the acquisition announcement was $1.20-$1.25 for fiscal 2011.
KAR will be releasing its Q4 results on August 24 following the closing bell with a conference scheduled at 4:00 pm CT that same day.
Shares of KAR are currently trading up $0.53 or 3.77 percent to $14.60.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- L3Harris CEO steps down amid conduct review, shares drop
- HomeTrust to acquire Blue Ridge Bankshares in $448M all-stock deal
- Home Depot (HD) PT Raised to $340 at Stifel Amid 'Sea Change in Investor Sentiment'
Create E-mail Alert Related Categories
UpgradesRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
