The restructuring strategy of Kadant Inc. (NYSE:KAI) looks like it'll be sustainable, according to Canaccord Genuity, and along with industry fundamentals on the rise, they see their EPS estimates for 2011 as being conservative.
Canaccord noted, "We remain bullish on Kadant given sustainable improvements in overall profitability due to prior restructuring efforts and improving industry fundamentals. We maintain our 2011 estimates, which we view as being conservative, and establish new 2012 estimates...we believe our 2011 revenue/EPS estimates of $290M/$1.50 remain on the conservative side. Looking ahead to 2012, we introduce revenue/EPS estimates of $310M/$1.90.
Canaccord Genuity reiterates a "Buy" rating on Kadant Inc., which closed Friday at $23.96, down $0.05, or 0.21 percent. Canaccord boosted their price target on Kadant from $25 to $30.
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