Needham & Company Upgrades Heritage-Crystal Clean (HCCI) to Buy; Mixed 4Q Results, But Strong Oil Opportunities on Horizon
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Price: $45.51 --0%
Rating Summary:
3 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company upgraded Heritage-Crystal Clean (NASDAQ: HCCI) from Hold to Buy with a price target of $24.00.
Analyst, Sean K.F. Hannan, said, "Overall, HCCI continues to exhibit excellent top-line growth due to its nascent re-refined lube oil business, which we expect should continue to improve in scale as well as pricing mix over the next 12-24 months. Considering current conditions, we suspect this business is on track to handily surpass original annual goals of $90M & 20% EBITDA, and opportunities could be higher by ~50% (top-line and margins). Buoyed by a resilient Environmental Svcs business that should see better profitability moving forward, we expect healthy margin expansion by June and continuing into next year. Consequently, we are increasingly confident in a sharp trajectory of earnings growth into 2013, and we are upgrading to Buy."
"No official guide provided, but our 1Q11 est. now $43.5M and $0.01, vs. prior $39.5M and $0.06. Our 2012 est. becomes $215M & $0.60, vs. our prior $200M & $0.78. Our 2013 est. is $263M & $1.29."
For an analyst ratings summary and ratings history on Heritage-Crystal Clean click here. For more ratings news on Heritage-Crystal Clean click here.
Shares of Heritage-Crystal Clean closed at $20.15 yesterday.
Analyst, Sean K.F. Hannan, said, "Overall, HCCI continues to exhibit excellent top-line growth due to its nascent re-refined lube oil business, which we expect should continue to improve in scale as well as pricing mix over the next 12-24 months. Considering current conditions, we suspect this business is on track to handily surpass original annual goals of $90M & 20% EBITDA, and opportunities could be higher by ~50% (top-line and margins). Buoyed by a resilient Environmental Svcs business that should see better profitability moving forward, we expect healthy margin expansion by June and continuing into next year. Consequently, we are increasingly confident in a sharp trajectory of earnings growth into 2013, and we are upgrading to Buy."
"No official guide provided, but our 1Q11 est. now $43.5M and $0.01, vs. prior $39.5M and $0.06. Our 2012 est. becomes $215M & $0.60, vs. our prior $200M & $0.78. Our 2013 est. is $263M & $1.29."
For an analyst ratings summary and ratings history on Heritage-Crystal Clean click here. For more ratings news on Heritage-Crystal Clean click here.
Shares of Heritage-Crystal Clean closed at $20.15 yesterday.
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