Brean Murray Carret & Co. Downgrades Zhongpin (HOGS) to Hold; Q4 Missed, Guidance Weak
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Price: $13.41 --0%
Rating Summary:
2 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Brean Murray Carret & Co. downgraded Zhongpin (NASDAQ: HOGS) from Buy to Hold.
Brean analyst says, "HOGS reported lower-than-expected 4Q results, with both revenue and EPS below consensus. In addition, margins continued to decline upon increasing cost pressure. While HOGS delivered strong revenue growth in 2011, it was largely driven by favorable ASP growth. The trend is unlikely to continue, as inflation in China has tempered; ASP growth is limited in 2012. As a result, we see limited visibility of revenue growth on the back of margin contraction. Therefore, we recommend that investors move to the sideline and wait for a better entry point."
For an analyst ratings summary and ratings history on Zhongpin click here. For more ratings news on Zhongpin click here.
Shares of Zhongpin closed at $8.36 yesterday.
Brean analyst says, "HOGS reported lower-than-expected 4Q results, with both revenue and EPS below consensus. In addition, margins continued to decline upon increasing cost pressure. While HOGS delivered strong revenue growth in 2011, it was largely driven by favorable ASP growth. The trend is unlikely to continue, as inflation in China has tempered; ASP growth is limited in 2012. As a result, we see limited visibility of revenue growth on the back of margin contraction. Therefore, we recommend that investors move to the sideline and wait for a better entry point."
For an analyst ratings summary and ratings history on Zhongpin click here. For more ratings news on Zhongpin click here.
Shares of Zhongpin closed at $8.36 yesterday.
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