Barrington Research Cuts Price Target on Lincoln Electric (LECO), Still Ranks as Top Quality Stock
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Price: $277.51 -0.73%
Rating Summary:
13 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 13 | New: 20
Rating Summary:
13 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 13 | New: 20
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Barrington Research is reiterating its Outperform rating on shares of Lincoln Electric (NASDAQ: LECO) while lowering its price target from $50 to $45 following Illinois Tool Works (NYSE: ITW) July 2011 monthly data.
The firm reports that recent gestures by management has indicated that they maybe looking to acquire one of its European competitors ESAB, a subsidiary of Charter PLC (Nasdaq: CHTR).
Charter announced that they are currently in talks with an unnamed company who is rumored to offer 870p-900p per share compared with Melrose's 840p offer.
An analyst at the firm comments, "Our expectation is that if LECO were interested in making a large acquisition like Charter PLC, it should be as part of a consortium of buyers with LECO acquiring only the ESAB Europe assets. We do not believe, nor would we be supportive of LECO management attempting another leveraged recapitalization in an attempt to acquire a large European asset."
Barrington is reducing its 2011 and 2012 EPS estimates from $2.43 and $2.74 to $2.36 and $2.57. Revenues for the two years are estimated to be $2.588 billion and $2.86 billion.
The firm believes that shares of LECO are one of the highest quality stocks based on its management, returns, and balance sheet.
For more ratings news on Lincoln Electric click here and for the rating history of Lincoln Electric click here.
Shares of Lincoln Electric closed at $29.69 yesterday.
The firm reports that recent gestures by management has indicated that they maybe looking to acquire one of its European competitors ESAB, a subsidiary of Charter PLC (Nasdaq: CHTR).
Charter announced that they are currently in talks with an unnamed company who is rumored to offer 870p-900p per share compared with Melrose's 840p offer.
An analyst at the firm comments, "Our expectation is that if LECO were interested in making a large acquisition like Charter PLC, it should be as part of a consortium of buyers with LECO acquiring only the ESAB Europe assets. We do not believe, nor would we be supportive of LECO management attempting another leveraged recapitalization in an attempt to acquire a large European asset."
Barrington is reducing its 2011 and 2012 EPS estimates from $2.43 and $2.74 to $2.36 and $2.57. Revenues for the two years are estimated to be $2.588 billion and $2.86 billion.
The firm believes that shares of LECO are one of the highest quality stocks based on its management, returns, and balance sheet.
For more ratings news on Lincoln Electric click here and for the rating history of Lincoln Electric click here.
Shares of Lincoln Electric closed at $29.69 yesterday.
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