Needham & Company Maintains a 'Buy' on Ceradyne (CRDN); Cutting Estimates on Weakness in Solar
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Price: $35.00 --0%
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Ceradyne (NASDAQ: CRDN) price target lowered $1 to $37.
Analyst, James Ricciuti, said, "We are reducing our estimates for CRDN to reflect the ongoing weakness in the solar market, as well as the timing of orders in the company’s defense business. We expect another very tough quarter for CRDN’s solar business in the June quarter, with only modest improvement in 2H. The recent low-rate initial production (LRIP) order for the enhanced combat helmet (ECH) is welcome news and is likely to be followed in Q2 by a potentially large full-rate production order, although we believe CRDN could be hard pressed to meet management’s full-year ECH revenue target given the timing of orders and the complexity of the new product. We continue to regard CRDN as an inexpensive stock, trading at 4x EV/estimated CY12 EBITDA, and we believe downside in the shares is limited at current levels."
"We are reducing our 2012 revenue estimate to $585M from $605M, slightly below current guidance of $590M-$625M. We are lowering our EPS estimate to $2.25 from $2.40. We are reducing our 2013 EPS estimate to $2.85 from $3.15."
For an analyst ratings summary and ratings history on Ceradyne click here. For more ratings news on Ceradyne click here.
Shares of Ceradyne closed at $32.05 yesterday.
Analyst, James Ricciuti, said, "We are reducing our estimates for CRDN to reflect the ongoing weakness in the solar market, as well as the timing of orders in the company’s defense business. We expect another very tough quarter for CRDN’s solar business in the June quarter, with only modest improvement in 2H. The recent low-rate initial production (LRIP) order for the enhanced combat helmet (ECH) is welcome news and is likely to be followed in Q2 by a potentially large full-rate production order, although we believe CRDN could be hard pressed to meet management’s full-year ECH revenue target given the timing of orders and the complexity of the new product. We continue to regard CRDN as an inexpensive stock, trading at 4x EV/estimated CY12 EBITDA, and we believe downside in the shares is limited at current levels."
"We are reducing our 2012 revenue estimate to $585M from $605M, slightly below current guidance of $590M-$625M. We are lowering our EPS estimate to $2.25 from $2.40. We are reducing our 2013 EPS estimate to $2.85 from $3.15."
For an analyst ratings summary and ratings history on Ceradyne click here. For more ratings news on Ceradyne click here.
Shares of Ceradyne closed at $32.05 yesterday.
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