Global Hunter Securities Upgrades Columbus McKinnon (CMCO) to Accumulate

Global Hunter Securities upgraded Columbus McKinnon (NASDAQ: CMCO) from Neutral to Accumulate with a price target of $28.00 (from $23.00).

Analyst Michael Shlisky said, "Overall, CMCO executed well in the quarter with 47% incremental margins, though volumes were up less than 2%; the stock was up 14% on Friday. We are raising our estimates and believe the stock may have more room to run, as there are several potential sources of upside going forward: (1) most importantly, management expressed a desire to refinance $150MM of CMCO's 7.875% notes in February when they are callable; even if rates are reduced less than 3%, the annualized EPS impact could be $0.15 or more; (2) strong execution on gross margins could continue, even in a GDP-plus growth environment, with utilization in factories still under 75%; and (3) SG&A expenses may come in at the low end of current guidance as management continues to look for ways to get leaner. Our new estimates and price target of $28 (from $23) reflect little of this potential upside, particularly the benefit of a refinancing."

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

Shares of Columbus McKinnon closed at $25.52 yesterday.

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