Global Hunter Securities Downgrades Cascade Corporation (CASC) to Accumulate; Concerns on Life Truck Trends in China
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Price: $0.97 --0%
Rating Summary:
2 Buy, 0 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
2 Buy, 0 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Global Hunter Securities downgraded Cascade Corporation (NYSE: CASC) to Accumulate with a price target of $60.00.
Analyst, Joe Giamichael, said, "While we remain positive on the long-term prospects for Cascade, we are lowering our rating as a result of two near-term factors; the first being recent share price appreciation (up 26% since our initiation on 12/28/11) and the second being some concern regarding recent lift truck industry trends in the China market. While our initial $60 price target could be viewed as somewhat conservative, given that it was predicated on a valuation of 6.5x 2012E EBITDA vs. current peer valuations averaging ~8x, we continue to feel that some discount to larger-capitalization peers remains valid. Additionally, we are somewhat concerned about a potential softening of demand from China. Lift truck industry statistics posted on the Cascade website have shown a significant decline in both bookings and shipments for lift trucks into the China market over the past several months. We feel that given the recent price appreciation it is prudent to wait for additional clarity regarding current market conditions. The China market has been a material growth driver for Cascade, as its revenue contribution has more than tripled over the past six years."
For an analyst ratings summary and ratings history on Cascade Corporation click here. For more ratings news on Cascade Corporation click here.
Shares of Cascade Corporation closed at $58.91 yesterday.
Analyst, Joe Giamichael, said, "While we remain positive on the long-term prospects for Cascade, we are lowering our rating as a result of two near-term factors; the first being recent share price appreciation (up 26% since our initiation on 12/28/11) and the second being some concern regarding recent lift truck industry trends in the China market. While our initial $60 price target could be viewed as somewhat conservative, given that it was predicated on a valuation of 6.5x 2012E EBITDA vs. current peer valuations averaging ~8x, we continue to feel that some discount to larger-capitalization peers remains valid. Additionally, we are somewhat concerned about a potential softening of demand from China. Lift truck industry statistics posted on the Cascade website have shown a significant decline in both bookings and shipments for lift trucks into the China market over the past several months. We feel that given the recent price appreciation it is prudent to wait for additional clarity regarding current market conditions. The China market has been a material growth driver for Cascade, as its revenue contribution has more than tripled over the past six years."
For an analyst ratings summary and ratings history on Cascade Corporation click here. For more ratings news on Cascade Corporation click here.
Shares of Cascade Corporation closed at $58.91 yesterday.
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