While TriMas Corp. (NASDAQ:TRS) seems to be okay for earnings to grow through 2011, Jefferies has concerns that after that they'll struggle to has sustainable earnings.
Jefferies said, "We are concerned over the sustainability of earnings growth after 2011. We believe there are resources deployed in too many businesses. Longer-term sales opportunities appear limited in businesses which account for about 50% of sales. We believe TRS will need to spend much of its cost savings to drive sales growth in its niche markets."
EPS and revenue estimates for full year 2010 were raised to $1.14/$941.9 million from $1.07/$926.1 million and to $1.38/$1 billion from $1.30/$972 million for full year 2011.
TriMas closed Tuesday at $19.03, gaining $0.34, or 1.82 percent. Jefferies, which maintains a "Hold" on TriMas, increased their price target from $14 to $20.
No comments:
Post a Comment