Hudson Securities Lowers Earnings Estimates On American Oriental Bioengineering (AOB)
Hudson Securities rates shares of American Oriental Bioengineering Inc. (NYSE: AOB) at Hold after the company reported less than stellar earnings results. Hudson is lowing its 2010 and 2011 top and bottom line estimates.
In a note to clients Hudson Securities writes, "We are maintaining our Hold recommendation for the common shares of American Oriental Bioengineering Inc. (AOB). Despite a favorable valuation, we believe the Company will continue to face risks of uncertainties from the ongoing China healthcare reform that include (i) increase expense to support ongoing R&D activities, (ii) potential gross margin contraction from continuing raw material price increases; and (c) increase sales, marketing and advertising spending to sustain brand recognition."
Shares of American Oriental Bioengineering are down 6 cents to $2.41 in mid-Monday trading.
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