Oppenheimer Maintains an 'Outperform' on ShangPharma (SHP); 3Q11: In-Line Quarter; Margin Pressure Should Ease Once Utilization Ramps Up
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Price: $8.95 --0%
Rating Summary:
4 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 20 | New: 20
Rating Summary:
4 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 20 | New: 20
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Oppenheimer maintains an 'Outperform' on ShangPharma Corporation (NYSE: SHP) price target of $15.00.
Oppenheimer analyst says, "In 3Q11, SHP continued to see robust demand for its chemistry, biology and integrated services. Total revenue grew 24.7%, beating our estimate but in line with Street consensus. Non-GAAP EPS of $0.24 were in line with Street consensus as well. However, the company is facing margin pressure on several fronts: RMB appreciation, new building rental costs and share-based compensation. We believe margins will improve once utilization rate goes up in the new building starting 2012. China's CRO industry is in a high growth mode, so SHP must rent a new facility to resolve a short-term overcapacity issue. Management has been efficient in managing costs while balancing strong demand from customers. Our FY12/13 non-GAAP EPS estimates are now $1.14/$1.34."
For an analyst ratings summary and ratings history on ShangPharma Corporation click here. For more ratings news on ShangPharma Corporation click here.
Shares of ShangPharma Corporation closed at $8.00 yesterday.
Oppenheimer analyst says, "In 3Q11, SHP continued to see robust demand for its chemistry, biology and integrated services. Total revenue grew 24.7%, beating our estimate but in line with Street consensus. Non-GAAP EPS of $0.24 were in line with Street consensus as well. However, the company is facing margin pressure on several fronts: RMB appreciation, new building rental costs and share-based compensation. We believe margins will improve once utilization rate goes up in the new building starting 2012. China's CRO industry is in a high growth mode, so SHP must rent a new facility to resolve a short-term overcapacity issue. Management has been efficient in managing costs while balancing strong demand from customers. Our FY12/13 non-GAAP EPS estimates are now $1.14/$1.34."
For an analyst ratings summary and ratings history on ShangPharma Corporation click here. For more ratings news on ShangPharma Corporation click here.
Shares of ShangPharma Corporation closed at $8.00 yesterday.
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