Needham & Company Maintains a 'Buy' on Ceradyne (CRDN); Stock Rallies On Stronger Than Expected Q3; Mgmt Reaffirms Full-Year Outlook
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Price: $35.00 --0%
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Ceradyne (NASDAQ: CRDN) price target cut $3 to $42.
Needham analyst says, "CRDN yesterday reported better than expected Q3 results. As expected, weakness in the solar market impacted demand for
the company’s solar crucibles, with management more cautious on the outlook for this business over the near term. CRDN’s defense business more than offset the weakness in solar, however, which coupled with a solid performance from its ESK business, drove the upside in the quarter. Management reaffirmed its full-year outlook, implying Q4 revenues and EPS will be at least in line with consensus, and expects to show some growth in 2012. CRDN shares rallied 10% on the print and outlook. We believe the stock remains attractive at current levels, trading at 8x our 2012 EPS estimate, adjusting for net cash."
"We are maintaining our Q4 EPS estimate at $0.76 on revenues of $143M vs our prior $146M estimate. We are increasing our 2012 EPS estimate to $3.12 from $3.10 on revenues of $586M, compared with $571M previously, which assumes slightly lower gross margins."
For more ratings news on Ceradyne click here and for the rating history of Ceradyne click here.
Shares of Ceradyne closed at $33.12 yesterday.
Needham analyst says, "CRDN yesterday reported better than expected Q3 results. As expected, weakness in the solar market impacted demand for
the company’s solar crucibles, with management more cautious on the outlook for this business over the near term. CRDN’s defense business more than offset the weakness in solar, however, which coupled with a solid performance from its ESK business, drove the upside in the quarter. Management reaffirmed its full-year outlook, implying Q4 revenues and EPS will be at least in line with consensus, and expects to show some growth in 2012. CRDN shares rallied 10% on the print and outlook. We believe the stock remains attractive at current levels, trading at 8x our 2012 EPS estimate, adjusting for net cash."
"We are maintaining our Q4 EPS estimate at $0.76 on revenues of $143M vs our prior $146M estimate. We are increasing our 2012 EPS estimate to $3.12 from $3.10 on revenues of $586M, compared with $571M previously, which assumes slightly lower gross margins."
For more ratings news on Ceradyne click here and for the rating history of Ceradyne click here.
Shares of Ceradyne closed at $33.12 yesterday.
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