Global Hunter Securities Downgrades Lufkin Industries (LUFK) to Neutral; Revising Estimates
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Price: $88.49 --0%
Rating Summary:
0 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
0 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Global Hunter Securities downgraded Lufkin Industries (NASDAQ: LUFK) from Buy to Neutral, price target raised to $85.00.
Global analyst said, "While execution improved in Q4 2011, at its current valuation we believe it will need to hit its marks over the next several quarters for investors to become more comfortable with the earnings progression and 2013 estimates, which are what make this potentially a $90+ stock. This could be difficult given the integration demands associated with recent M&A, major international expansion, and continued labor issues in Argentina. That said, we prefer to sit on the sidelines, with the once propitious, now clipboard savvy superbowl ring wearing David Carr. However, unlike Carr, LUFK shows real promise to produce results over time and thus we believe that our Neutral stance may only last several months."
"We are revising our 2012 EPS estimate to $4.03 from $4.40, largely reflecting significantly weaker results in 1H 2012 than previously modeled given the improvement in both Oilfield and PT margins is projected to be 2H weighted. We are increasing our 2013 EPS estimate to $5.70, up from $5.50, to reflect higher 2012 year-end margins than previously modeled.
For an analyst ratings summary and ratings history on Lufkin Industries click here. For more ratings news on Lufkin Industries click here.
Shares of Lufkin Industries closed at $80.62 yesterday.
Global analyst said, "While execution improved in Q4 2011, at its current valuation we believe it will need to hit its marks over the next several quarters for investors to become more comfortable with the earnings progression and 2013 estimates, which are what make this potentially a $90+ stock. This could be difficult given the integration demands associated with recent M&A, major international expansion, and continued labor issues in Argentina. That said, we prefer to sit on the sidelines, with the once propitious, now clipboard savvy superbowl ring wearing David Carr. However, unlike Carr, LUFK shows real promise to produce results over time and thus we believe that our Neutral stance may only last several months."
"We are revising our 2012 EPS estimate to $4.03 from $4.40, largely reflecting significantly weaker results in 1H 2012 than previously modeled given the improvement in both Oilfield and PT margins is projected to be 2H weighted. We are increasing our 2013 EPS estimate to $5.70, up from $5.50, to reflect higher 2012 year-end margins than previously modeled.
For an analyst ratings summary and ratings history on Lufkin Industries click here. For more ratings news on Lufkin Industries click here.
Shares of Lufkin Industries closed at $80.62 yesterday.
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