Barclays Maintains an 'Overweight' on Elster Group SE (ELT); Investing To Support Growth Opportunities
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Price: $20.54 --0%
Rating Summary:
7 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
7 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on Elster Group SE (NYSE: ELT) price target of $18.00.
Barclays analyst says, "While the lack of specific guidance for 2012 combined with unclear commentary on Elster's goal for investing in its business may disappoint some, we emerged encouraged about the company's relative growth opportunities in the metering market following its analyst day. We believe the company is taking the right approach towards its strategy by capitalizing on near-term opportunities (i.e. gas) and positioning itself for longer-term tailwinds (e.g. international upgrades) as they emerge. We therefore maintain our Overweight rating on the shares as our preferred pick in the smart metering market."
"We believe that Elster's investment in "operational excellence" is more of a capital allocation plan rather than a net increase in capex / opex. We do, however, believe the scope of near-term margin expansion is limited until 1) top line begins to reflect improving market traction, and 2) Elster begins to benefit from its cost reduction plans. We thus hold our CY12/CY13 estimates of $1.22/$1.41."
For an analyst ratings summary and ratings history on Elster Group SE click here. For more ratings news on Elster Group SE click here.
Shares of Elster Group SE closed at $12.96 yesterday.
Barclays analyst says, "While the lack of specific guidance for 2012 combined with unclear commentary on Elster's goal for investing in its business may disappoint some, we emerged encouraged about the company's relative growth opportunities in the metering market following its analyst day. We believe the company is taking the right approach towards its strategy by capitalizing on near-term opportunities (i.e. gas) and positioning itself for longer-term tailwinds (e.g. international upgrades) as they emerge. We therefore maintain our Overweight rating on the shares as our preferred pick in the smart metering market."
"We believe that Elster's investment in "operational excellence" is more of a capital allocation plan rather than a net increase in capex / opex. We do, however, believe the scope of near-term margin expansion is limited until 1) top line begins to reflect improving market traction, and 2) Elster begins to benefit from its cost reduction plans. We thus hold our CY12/CY13 estimates of $1.22/$1.41."
For an analyst ratings summary and ratings history on Elster Group SE click here. For more ratings news on Elster Group SE click here.
Shares of Elster Group SE closed at $12.96 yesterday.
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