Needham & Company Maintains a 'Strong Buy' on Black Diamond (BDE); Believe Offering Proceeds To Be Used For Accretive Acquisitions
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Price: $6.65 --0%
Rating Summary:
3 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 19
Rating Summary:
3 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 19
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Needham & Company maintains a 'Strong Buy' on Black Diamond (NASDAQ: BDE) price target of $11.00.
Analyst, Sean McGowan, said, "BDE recently raised almost $67 million in an offering of 7.75 mm shares, plus a 15% green shoe. Considering that BDE filed a $250 mm mixed securities shelf registration in December of 2010, and has said repeatedly that half of its anticipated growth over the next few years would come from acquisitions, we had anticipated that at some point the company would announce a financing in connection with an acquisition. The fact that this financing has been announced ahead of an acquisition leads us to speculate that the company may be on the verge of announcing one soon. We have lowered our EPS estimates to account for the new shares (also taking into account management’s recent comments about 4Q’11 results and expected growth), but we would revisit our estimates once an acquisition is announced."
"Our 2012 EPS estimate remains $0.05, but the extra shares reduce our 2013 EPS estimate from $0.20 to $0.15, and our 2014 EPS estimate from $0.45 to $0.35. We would revisit these estimates if/when an acquisition is announced."
For an analyst ratings summary and ratings history on Black Diamond click here. For more ratings news on Black Diamond click here.
Shares of Black Diamond closed at $8.44 yesterday.
Analyst, Sean McGowan, said, "BDE recently raised almost $67 million in an offering of 7.75 mm shares, plus a 15% green shoe. Considering that BDE filed a $250 mm mixed securities shelf registration in December of 2010, and has said repeatedly that half of its anticipated growth over the next few years would come from acquisitions, we had anticipated that at some point the company would announce a financing in connection with an acquisition. The fact that this financing has been announced ahead of an acquisition leads us to speculate that the company may be on the verge of announcing one soon. We have lowered our EPS estimates to account for the new shares (also taking into account management’s recent comments about 4Q’11 results and expected growth), but we would revisit our estimates once an acquisition is announced."
"Our 2012 EPS estimate remains $0.05, but the extra shares reduce our 2013 EPS estimate from $0.20 to $0.15, and our 2014 EPS estimate from $0.45 to $0.35. We would revisit these estimates if/when an acquisition is announced."
For an analyst ratings summary and ratings history on Black Diamond click here. For more ratings news on Black Diamond click here.
Shares of Black Diamond closed at $8.44 yesterday.
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