Auriga Raising Numbers on Dynamic Materials (BOOM); Looking For Better Entry Point
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Price: $7.61 +0.79%
Rating Summary:
7 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 18 | New: 20
Rating Summary:
7 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 18 | New: 20
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Auriga maintains a 'Hold' on Dynamic Materials (NASDAQ: BOOM) price target raised to $26.
Auriga analyst said, "BOOM reported 4Q11 EPS results of $0.27 versus our estimate of $0.20 and consensus of $0.20. The largest variance relative to our estimates was higher than anticipated revenue. In conjunction with the release of 4Q11 EPS results, management indicated they expect 2012 revenue growth to be in a range of 7% - 10% and margins to be in a range of 28% to 29% versus the 27% achieved in 2011. While the backlog in the Explosive Metalworking segment decreased sequentially to $45m from $47m, we understand at the end of January it had returned to 3Q levels. To incorporate slightly higher gross margins and lower interest expense in 2012, we are increasing our EPS estimate to $1.25 from $1.15. We are also increasing our price target to $26, which is now based on our 2013 EPS estimate of $1.45 versus our 2012 estimate, previously. We remain constructive on BOOM's key markets most notably energy and chemical processing. However, we encourage investors with shorter-term time horizons to take advantage of the broader market volatility and wait for a better entry point."
For an analyst ratings summary and ratings history on Dynamic Materials click here. For more ratings news on Dynamic Materials click here.
Shares of Dynamic Materials closed at $24.51 yesterday.
Auriga analyst said, "BOOM reported 4Q11 EPS results of $0.27 versus our estimate of $0.20 and consensus of $0.20. The largest variance relative to our estimates was higher than anticipated revenue. In conjunction with the release of 4Q11 EPS results, management indicated they expect 2012 revenue growth to be in a range of 7% - 10% and margins to be in a range of 28% to 29% versus the 27% achieved in 2011. While the backlog in the Explosive Metalworking segment decreased sequentially to $45m from $47m, we understand at the end of January it had returned to 3Q levels. To incorporate slightly higher gross margins and lower interest expense in 2012, we are increasing our EPS estimate to $1.25 from $1.15. We are also increasing our price target to $26, which is now based on our 2013 EPS estimate of $1.45 versus our 2012 estimate, previously. We remain constructive on BOOM's key markets most notably energy and chemical processing. However, we encourage investors with shorter-term time horizons to take advantage of the broader market volatility and wait for a better entry point."
For an analyst ratings summary and ratings history on Dynamic Materials click here. For more ratings news on Dynamic Materials click here.
Shares of Dynamic Materials closed at $24.51 yesterday.
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