Barclays Maintains an 'Equalweight' on Elbit Systems (ESLT); Positive Trends, but Slow Growth
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Price: $783.62 +0.51%
Rating Summary:
2 Buy, 7 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 7 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Equalweight' on Elbit Systems (NASDAQ: ESLT) price target of $50.00.
Barclays analyst says, "Revenues and backlogs growing slowly, gross margin as well: 3Q revenues were up 2% with sales to US and other (a catch-all that includes several strong growth opportunities including Brazil) being the areas of strength. Backlog improved $42mn to $5.691bn and is up 4.5% from the start of 2010. Non-Gaap gross margin was 31.9% in the quarter. We believe that these trends point to continued slow and steady growth in 2012, but we have reduced our revenue growth estimate to 5.4% growth from 7.2% as we see a snap back in revenues as less likely based on macro and overall defense market trends. Using historical trends our 2012 revenue forecast implies 5.8% backlog growth from current levels. While we see limited downside at ESLT, and the stock could even rally somewhat on the back of reasonable trends, we see other stocks in our tech coverage universe as more attractive and maintain our rating and PT."
(Barclays raises FY11 EPS estimate from $4.28 to $4.83, but lowers FY12 from $5.48 to $5.39)
For an analyst ratings summary and ratings history on Elbit Systems click here. For more ratings news on Elbit Systems click here.
Shares of Elbit Systems closed at $43.65 yesterday.
Barclays analyst says, "Revenues and backlogs growing slowly, gross margin as well: 3Q revenues were up 2% with sales to US and other (a catch-all that includes several strong growth opportunities including Brazil) being the areas of strength. Backlog improved $42mn to $5.691bn and is up 4.5% from the start of 2010. Non-Gaap gross margin was 31.9% in the quarter. We believe that these trends point to continued slow and steady growth in 2012, but we have reduced our revenue growth estimate to 5.4% growth from 7.2% as we see a snap back in revenues as less likely based on macro and overall defense market trends. Using historical trends our 2012 revenue forecast implies 5.8% backlog growth from current levels. While we see limited downside at ESLT, and the stock could even rally somewhat on the back of reasonable trends, we see other stocks in our tech coverage universe as more attractive and maintain our rating and PT."
(Barclays raises FY11 EPS estimate from $4.28 to $4.83, but lowers FY12 from $5.48 to $5.39)
For an analyst ratings summary and ratings history on Elbit Systems click here. For more ratings news on Elbit Systems click here.
Shares of Elbit Systems closed at $43.65 yesterday.
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