TiconderogaMaintains a 'Neutral' on Benchmark (BHE); Announces a Big Miss, and EMS Stocks to Come Under Pressure
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Price: $30.44 -0.36%
Rating Summary:
5 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
5 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Ticonderoga maintains a 'Neutral' on Benchmark (NYSE: BHE)
Ticonderoga analyst says, "This morning, Benchmark Electronics negatively pre-announced its 1Q11 results, citing softer than expected demand and inventory corrections at certain customers. This is the third negative 1QCY11 pre-announcement from the Ticonderoga EMS Basket that we believe is the result of a decelerating sales cycle as tech demand slows, inviting increased competitive pressures. We expect Benchmark Electronics and the remainder of our EMS coverage to be under selling pressure this morning, including Celestica (CLS, $10.96, Buy), Flextronics (Nasdaq: FLEX)(Sell-rated), Nam Tai Electronics (NYSE: NTE)(Neutral) and Plexus (Nasdaq: PLXS)(Neutral). In our view, Flextronics is the most susceptible to a slowing demand environment given the company's higher operating leverage that is the result of a vertically integrated manufacturing strategy that drives above-average operating leverage."
For more ratings news on Benchmark click here and for the rating history of Benchmark click here.
Shares of Benchmark closed at $18.41 yesterday.
Ticonderoga analyst says, "This morning, Benchmark Electronics negatively pre-announced its 1Q11 results, citing softer than expected demand and inventory corrections at certain customers. This is the third negative 1QCY11 pre-announcement from the Ticonderoga EMS Basket that we believe is the result of a decelerating sales cycle as tech demand slows, inviting increased competitive pressures. We expect Benchmark Electronics and the remainder of our EMS coverage to be under selling pressure this morning, including Celestica (CLS, $10.96, Buy), Flextronics (Nasdaq: FLEX)(Sell-rated), Nam Tai Electronics (NYSE: NTE)(Neutral) and Plexus (Nasdaq: PLXS)(Neutral). In our view, Flextronics is the most susceptible to a slowing demand environment given the company's higher operating leverage that is the result of a vertically integrated manufacturing strategy that drives above-average operating leverage."
For more ratings news on Benchmark click here and for the rating history of Benchmark click here.
Shares of Benchmark closed at $18.41 yesterday.
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