UBS Maintains a 'Neutral' on Kemet (KEM); Balance Sheet Much Stronger, But Normal EPS Elusive

UBS maintains a 'Neutral' on Kemet (NYSE: KEM) price target raised from $8 to $10.

UBS analyst says, "Following KEM’s earnings we adjust our ests slightly with FY12/FY13 Revs/EPS moving to $984m/$1.16 and $949m/$0.88, vs. $993m/$1.23 and $979m/$0.86 prev. We foresee the March qtr marking a bottom for EPS/margins but struggle to ascertain normalized earnings power. 3Q/4Q 12 Revs/GM are at comparable levels to 3Q/4Q10 and we struggle to identify what’s structurally changed. At FY14 Rev est of $1b, we foresee GM of 24%, EPS of $1.23, and find the shares fairly valued."

For an analyst ratings summary and ratings history on Kemet click here. For more ratings news on Kemet click here.

Shares of Kemet closed at $9.54 yesterday.

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