KeyBanc Starts Valmont Industries (VMI) at Buy, Forecasts 5-10% Growth in Irrigation Sales for 2012

KeyBanc initiates coverage on shares of Valmont Industries (NYSE: VMI) with a Buy rating and $110 price target.

The firm encourages investors to take advantage of the current price of the shares and buy. KeyBanc notes that its recent market checks indicate that irrigation sales will increase 5-10 percent in 2012 if corn prices trend in line with consensus. Many investors expect Irrigation sales will decline in 2012.

KeyBanc is bullish on the company's Utility segment as they forecast sales growth and operating income growth of 17 percent and 49 percent in 2012.

An analyst at the firm comments, "Over the past two decades, Valmont’s management team has done an exceptional job of allocating capital and executing, as evidenced by its robust earnings growth and share price appreciation. Since Mogens Bay took over as CEO in August 1993, Valmont has outperformed the S&P 500 by 700 percent."

For 2011 and 2012, the firm estimates EPS of $5.80 and $7.02.

For more ratings news on Valmont Industries click here and for the rating history of Valmont Industries click here.

Shares of Valmont Industries closed at $84.20 yesterday.

---

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

---

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Newton Golf Company (NWTG) Reports Q2 Loss of $0.49