UBS Raises Price Target on Meritor (MTOR); Maintain Neutral on Limited Upside
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Price: $36.50 --0%
Rating Summary:
5 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Neutral' on Meritor (NYSE: MTOR) price target raised from $5.50 to $8.00.
UBS analyst says, "Meritor shares have risen 39% from $5.47 to $7.61 since December. Over roughly the same period sector EBITDA multiples expanded by 15% from 4.7x to 5.5x. Meritor’s multiple expanded from 4.9x to 5.5x, similar to its peers, yet Meritor’s higher than average leverage (debt/equity ~3x), translated into an above average stock return (see Feb 14th report Post Multiple Correction, US will be key). We expect future stock returns to depend on improving results rather than multiple expansion. Thus we’re raising our price target but maintaining our neutral stance."
UBS raises FY12 EPS estimate from $1.26 to $1.30 and FY13 from $1.50 to $1.60.
For an analyst ratings summary and ratings history on Meritor click here. For more ratings news on Meritor click here.
Shares of Meritor closed at $7.61 yesterday.
UBS analyst says, "Meritor shares have risen 39% from $5.47 to $7.61 since December. Over roughly the same period sector EBITDA multiples expanded by 15% from 4.7x to 5.5x. Meritor’s multiple expanded from 4.9x to 5.5x, similar to its peers, yet Meritor’s higher than average leverage (debt/equity ~3x), translated into an above average stock return (see Feb 14th report Post Multiple Correction, US will be key). We expect future stock returns to depend on improving results rather than multiple expansion. Thus we’re raising our price target but maintaining our neutral stance."
UBS raises FY12 EPS estimate from $1.26 to $1.30 and FY13 from $1.50 to $1.60.
For an analyst ratings summary and ratings history on Meritor click here. For more ratings news on Meritor click here.
Shares of Meritor closed at $7.61 yesterday.
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