Needham & Company Reiterates a 'Strong Buy' on Polypore (PPO); Despite a Pause in Growth, We See Compelling Opportunity

Needham & Company reiterates a 'Strong Buy' on Polypore International (NYSE: PPO) price target cut from $79 to $62.

Analsyt, Michael Lew, said, "After a brief pause, we expect PPO to return to a strong growth trajectory as more capacity is added with electric vehicle (EV) platforms ramping. We are bullish on the company’s growth prospects and view the current share price as a very compelling entry point to invest in a company with margins in the 40% (gross) and 25% (operating) range, and strong market share across 90% of its businesses."

"We are adjusting our near-term estimates and price target to reflect the obstacles described above. Our 1Q12 forecast is for revenues of $171.5MM (from $214.5MM) with EPS of $0.42 (from $0.64), and for 2012 our sales estimate is now $852.9MM (from $931.7MM) with EPS of $2.47 (from $2.83)."

For an analyst ratings summary and ratings history on Polypore International click here. For more ratings news on Polypore International click here.

Shares of Polypore International closed at $39.52 yesterday.

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