FBR Capital Downgrades Park-Ohio Holdings (PKOH) to Market Perform

FBR Capital downgraded Park-Ohio Holdings (NASDAQ: PKOH) from Outperform to Market Perform with a price target of $33.00 (from $50.00).

Analyst Christopher Van Horn commented, "We are reducing our rating on Park-Ohio Holdings to Market Perform from Outperform and are bringing our price target down from $50 to $33. A tough 1Q16 for the company has us focused on fundamental headwinds that could continue to hinder sales going forward. Fiat Chrysler is on the path to ending production of the Chrysler 200 and Dodge Dart, which Park-Ohio had aluminum business on, and this compounded ongoing challenges in rail and Class 8 truck markets. April NAFTA truck orders came in at 13,700, well below the long-term average, which may indicate continued headwinds in 2016. We think that the market is likely to remain cautious around shares for at least the next two quarters and possibly longer. While longterm upside to our valuation exists based on the company's track record of strategic and organic sales and earnings growth, we do not anticipate much of this upside in the next 12 months. Given our expectations, we are stepping to the sidelines for now and significantly reducing estimates given our demand outlook. As mentioned above, our DCF-derived price target falls from $50 to $33, which we feel fairly values the company on a comparative multiple basis."

For an analyst ratings summary and ratings history on Park-Ohio Holdings click here. For more ratings news on Park-Ohio Holdings click here.

Shares of Park-Ohio Holdings closed at $25.55 yesterday.

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