Wells Fargo Starts Harmon International (HAR) at Market Perform

Wells Fargo initiates coverage on Harmon International (NYSE: HAR) with a Market Perform rating and $41-$45 valuation range.

The firm comments, "The company is in an enviable position to reap the benefits of the strong global trend in in-vehicle information and entertainment technologies and connectivity. Harman is the market leader in the global automotive infotainment market, which is estimated to grow to about $14.4B by FY2016 (conservative, in our view). We believe take rates can accelerate as infotainment piece price has declined substantially. Although the long-term growth story is intact, we believe near-term challenges include incremental downside risk to Europe production mix in FY2013 (incremental weakness in German production) and slowing growth in China. Our valuation range is $41-45, applying an EV/EBITDA multiple of 5.2-5.7x to our FY2013 estimate of $455MM.

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

Shares of Harmon International closed at $38.00 yesterday.

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