Needham & Company Reiterates a 'Buy' on Sypris Solutions (SYPR); Industrial Business Strong, Shortfall in A&D
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Price: $2.06 -4.19%
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Buy' on Sypris Solutions (NASDAQ: SYPR) price target of $6.00.
Analyst, James Ricchiuti, said, "SYPR before the open yesterday turned in a mixed Q4 report, with EPS and free cash flow coming in above expectations, driven by a strong performance from the company’s Industrial Group. Revenues were lower than expected, due to a shortfall in SYPR’s Aerospace & Defense business resulting from a delay in certification of a secure communication product, subsequently received in Q1. Were it not for this delay, SYPR would have delivered its strongest earnings report in several years. The good news is that the momentum in the Industrial business appears sustainable given the bright outlook for the commercial truck and trailer markets, while margins in the A&D business should bounce back in Q1, with A&D revenues expected to be up sequentially throughout 2012. At 3x EV/estimated 2012 EBITDA, we believe SYPR shares represent an exceptional value for micro-cap investors. Underscoring SYPR’s improving financials, the company’s board of directors earlier this month initiated a regular quarterly dividend."
Needham raises FY12 EPS estimate from $0.32 to $0.35, starts FY13 at $0.45.
For an analyst ratings summary and ratings history on Sypris Solutions click here. For more ratings news on Sypris Solutions click here.
Shares of Sypris Solutions closed at $3.93 yesterday.
Analyst, James Ricchiuti, said, "SYPR before the open yesterday turned in a mixed Q4 report, with EPS and free cash flow coming in above expectations, driven by a strong performance from the company’s Industrial Group. Revenues were lower than expected, due to a shortfall in SYPR’s Aerospace & Defense business resulting from a delay in certification of a secure communication product, subsequently received in Q1. Were it not for this delay, SYPR would have delivered its strongest earnings report in several years. The good news is that the momentum in the Industrial business appears sustainable given the bright outlook for the commercial truck and trailer markets, while margins in the A&D business should bounce back in Q1, with A&D revenues expected to be up sequentially throughout 2012. At 3x EV/estimated 2012 EBITDA, we believe SYPR shares represent an exceptional value for micro-cap investors. Underscoring SYPR’s improving financials, the company’s board of directors earlier this month initiated a regular quarterly dividend."
Needham raises FY12 EPS estimate from $0.32 to $0.35, starts FY13 at $0.45.
For an analyst ratings summary and ratings history on Sypris Solutions click here. For more ratings news on Sypris Solutions click here.
Shares of Sypris Solutions closed at $3.93 yesterday.
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