Jefferies Raises Price Target on Susser Holdings (SUSS), Outloook Remains Strong
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Price: $82.46 --0%
Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 19
Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 19
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Jefferies is reiterating its Buy rating on shares of Susser Holdings Corporation (NASDAQ: SUSS) while raising its price target from $20 to $26.
Following a meeting with management, the firm feels that the company is on track and is "redefining its industry by building a culture of success." With the team owning over 15 percent of the total company, Jefferies believes that they understand that success depends on return on capital.
Jefferies notes that sales tax revenues in many of the company's core markets are rising, onshore rig counts have risen by 150 to 900 over the past six months, and retail and wholesale spreads in conventional gas remain higher than average. An analyst at Jefferies estimates that, "every half penny per gallon in added profit equates to roughly $0.04 per quarter, while every 1 percent in merchandise comp is worth roughly $0.04 in EPS per quarter, all else equal."
The firm is maintaining its Q3 and 2011 EPS estimates of $0.51 and $1.90, but is raising its 2012 EPS estimate from $0.96 to $1.12. Sales for 2011 and 2012 are forecasted to be $5.004 billion and $5.404 billion.
For more ratings news on Susser Holdings Corporation click here and for the rating history of Susser Holdings Corporation click here.
Shares of Susser Holdings Corporation closed at $20.42 yesterday.
Following a meeting with management, the firm feels that the company is on track and is "redefining its industry by building a culture of success." With the team owning over 15 percent of the total company, Jefferies believes that they understand that success depends on return on capital.
Jefferies notes that sales tax revenues in many of the company's core markets are rising, onshore rig counts have risen by 150 to 900 over the past six months, and retail and wholesale spreads in conventional gas remain higher than average. An analyst at Jefferies estimates that, "every half penny per gallon in added profit equates to roughly $0.04 per quarter, while every 1 percent in merchandise comp is worth roughly $0.04 in EPS per quarter, all else equal."
The firm is maintaining its Q3 and 2011 EPS estimates of $0.51 and $1.90, but is raising its 2012 EPS estimate from $0.96 to $1.12. Sales for 2011 and 2012 are forecasted to be $5.004 billion and $5.404 billion.
For more ratings news on Susser Holdings Corporation click here and for the rating history of Susser Holdings Corporation click here.
Shares of Susser Holdings Corporation closed at $20.42 yesterday.
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