Piper Jaffray Downgrades Meritor (MTOR) to Neutral

Piper Jaffray downgraded Meritor (NYSE: MTOR) from Overweight to Neutral with a price target of $15.00.

Analyst Alexander Potter comments, "We are downgrading MTOR following strong fiscal Q4 results. MTOR has executed its restructuring plan very well - and margins have risen as a result - but after yesterday's 14% rally, we think investors are now giving management full credit for this achievement. So what's next for MTOR? To us, it seems unlikely that the company can lever its current product portfolio to push EBITDA margins significantly beyond 10%. And with North American truck orders running at record levels in October, we think there's risk of multiple compression ahead of a cyclical peak in this market (57% of revenue)."

The firm raised FY 2015 EPS from $1.13 to $1.26 and FY 2016 EPS from $1.56 to $1.75.

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

Shares of Meritor closed at $13.86 yesterday.

You May Also Be Interested In

• Wells Fargo Downgrades Roku Inc. (ROKU) to Equal Weight
• Blaize Inc. (BZAI) PT Lowered to $2 at B.Riley
• Blaize Inc. (BZAI) PT Lowered to $2 at Rosenblatt