DA Davidson Raises Price Target on Zoltek Companies (ZOLT), Encouraged With Management's Comments
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Price: $16.73 --0%
Rating Summary:
1 Buy, 1 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
Rating Summary:
1 Buy, 1 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
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DA Davidson is reiterating its Buy rating on shares of Zoltek Companies, Inc. (NASDAQ: ZOLT) and is lifting its price target from $16 to $18.
The company reported solid Q1 results as both earnings and sales were substantially higher than the Street's expectations. During the conference, management highlighted recent trends look to stick around for some time and that demand from leading wind customers looks to remains stable.
"Some investors have been concerned as inventory during Q1:FY12 increased to $52.9 million from $47.9 million in Q4:FY11. While part of the inventory build was to meet higher demand, the rest was due to the fact that ZOLT bought ACN at opportunistically low prices during the end of CY11. We believe ZOLT has ~3-4 months of low cost raw material inventory which should help gross margins in FY12.The firm reports," reports the firm.
DA Davidson is reaffirming its FY12 and FY13 EPS estimates of $0.66 and $0.69 on $189 million and $209 million in total sales.
For an analyst ratings summary and ratings history on Zoltek Companies, Inc. click here. For more ratings news on Zoltek Companies, Inc. click here.
Shares of Zoltek Companies, Inc. closed at $14.58 yesterday.
The company reported solid Q1 results as both earnings and sales were substantially higher than the Street's expectations. During the conference, management highlighted recent trends look to stick around for some time and that demand from leading wind customers looks to remains stable.
"Some investors have been concerned as inventory during Q1:FY12 increased to $52.9 million from $47.9 million in Q4:FY11. While part of the inventory build was to meet higher demand, the rest was due to the fact that ZOLT bought ACN at opportunistically low prices during the end of CY11. We believe ZOLT has ~3-4 months of low cost raw material inventory which should help gross margins in FY12.The firm reports," reports the firm.
DA Davidson is reaffirming its FY12 and FY13 EPS estimates of $0.66 and $0.69 on $189 million and $209 million in total sales.
For an analyst ratings summary and ratings history on Zoltek Companies, Inc. click here. For more ratings news on Zoltek Companies, Inc. click here.
Shares of Zoltek Companies, Inc. closed at $14.58 yesterday.
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