Needham & Company Cuts Numbers on ESCO Technologies (ESE) on Weak Q1
Needham & Company cut estimates and its price target on ESCO Technologies (NYSE: ESE) from $46 to $42 following a soft Q1 and outlook but maintained a Buy rating.
Analyst Sean K.F. Hannan comments, "Overall, we continue to be positive on the longer-term opportunities at ESE, where the company still looks poised for healthy growth into F14 as aided by SoCal Gas. Despite some market challenges in Aclara, which has surprisingly disrupted the story, bookings remain solid and business should improve from recent levels. Further, the improving cost structure should generate a healthy snap-back in margins as well as earnings recovery in out quarters, in our view. Consequently, we maintain our Buy, but lower our target to $42 (from $46) on ~14.5-15x our F14 estimate of $2.87 (ex. amort)."
The firm cut FY 2013 EPS estimates from $2.25 to $1.70 and FY 2014 EPS estimates from $2.84 to $2.54.
For an analyst ratings summary and ratings history on ESCO Technologies click here. For more ratings news on ESCO Technologies click here.
Shares of ESCO Technologies closed at $36.10 yesterday, with a 52 week range of $32.98-$42.42.
Analyst Sean K.F. Hannan comments, "Overall, we continue to be positive on the longer-term opportunities at ESE, where the company still looks poised for healthy growth into F14 as aided by SoCal Gas. Despite some market challenges in Aclara, which has surprisingly disrupted the story, bookings remain solid and business should improve from recent levels. Further, the improving cost structure should generate a healthy snap-back in margins as well as earnings recovery in out quarters, in our view. Consequently, we maintain our Buy, but lower our target to $42 (from $46) on ~14.5-15x our F14 estimate of $2.87 (ex. amort)."
The firm cut FY 2013 EPS estimates from $2.25 to $1.70 and FY 2014 EPS estimates from $2.84 to $2.54.
For an analyst ratings summary and ratings history on ESCO Technologies click here. For more ratings news on ESCO Technologies click here.
Shares of ESCO Technologies closed at $36.10 yesterday, with a 52 week range of $32.98-$42.42.