Barclays Maintains an 'Equalweight' on PACCAR (PCAR); Solid Beat; Slow Recovery Should Continue
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Price: $130.79 +0.05%
Rating Summary:
12 Buy, 22 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 22 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Equalweight' on PACCAR (NASDAQ: PCAR) price target lowered by $1 to $42.00.
Barclays analyst says, "We believe that PCAR's 3Q11 confirms our constructive view of the company as a highly consistent operator, but we remain somewhat hesitant around the name given continued somewhat restrained operating margin growth and uncertainty in Europe. PCAR delivered a solid 3Q11 result that exceeded our expectations both in earnings and margin. Additionally, management seems confident that supplier constraints and, to a lesser extent, price/cost issues are beginning to ease, supporting earnings growth and some margin expansion in 4Q11 and 2012. However, despite these positive company-specific trends, we continue to expect a gradual yet choppy truck upcycle, underscored by PCAR's preliminary 2012 NAFTA and EU outlooks."
"We lower our 2012 EPS estimate to $3.20 from $3.30, reflecting our less constructive outlook on the EU trucking industry next year. We increase our 2011 EPS estimate to $2.75 from $2.55 to account for the beat in the quarter as well as 4Q expectations of improved margin in Truck as well as a lower tax rate and share count."
For more ratings news on PACCAR click here and for the rating history of PACCAR click here.
Shares of PACCAR closed at $41.48 yesterday.
Barclays analyst says, "We believe that PCAR's 3Q11 confirms our constructive view of the company as a highly consistent operator, but we remain somewhat hesitant around the name given continued somewhat restrained operating margin growth and uncertainty in Europe. PCAR delivered a solid 3Q11 result that exceeded our expectations both in earnings and margin. Additionally, management seems confident that supplier constraints and, to a lesser extent, price/cost issues are beginning to ease, supporting earnings growth and some margin expansion in 4Q11 and 2012. However, despite these positive company-specific trends, we continue to expect a gradual yet choppy truck upcycle, underscored by PCAR's preliminary 2012 NAFTA and EU outlooks."
"We lower our 2012 EPS estimate to $3.20 from $3.30, reflecting our less constructive outlook on the EU trucking industry next year. We increase our 2011 EPS estimate to $2.75 from $2.55 to account for the beat in the quarter as well as 4Q expectations of improved margin in Truck as well as a lower tax rate and share count."
For more ratings news on PACCAR click here and for the rating history of PACCAR click here.
Shares of PACCAR closed at $41.48 yesterday.
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