KeyBanc Starts Molex Incorporated (MOLX) at Hold; Strong Connector Mfg. Should Continue Solid Performance, But Fairly Valued

KeyBanc initiates coverage on Molex Incorporated (NASDAQ: MOLX) with a Hold.

KeyBanc analyst says, "We believe the Company’s strong management team, effective execution, focus on continuous cost reductions and market leadership will likely provide a solid foundation for long-term earnings growth. However, in our view, these benefits will likely be substantiated in a steady and measured improvement in EPS that we think is already captured at the current share price."

"Our FY11 estimate is set at $1.78 vs. $1.10 (up 62% year-over-year), including a fiscal 4Q11 estimate (June) of $0.47 vs. $0.39 and full-year revenue of $3.6 billion (up 20%). Our fiscal 4Q11 revenue estimate is $922 million, up 9% year-over-year. Our FY12 estimate is $2.02, which includes total revenue growth of 7.5% and operating margins of 13.8%. For FY13, our EPS estimate is $2.26, which assumes total growth of 7.4% and operating margins of 13.8%."

For more ratings news on Molex Incorporated click here and for the rating history of Molex Incorporated click here.

Shares of Molex Incorporated closed at $24.44 yesterday.

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