Hudson Securities Initiating Coverage On China XD Plastics Company (CXDC)

Hudson Securities is initiating coverage on China XD Plastics Company CXDC with an $8 price target, and a Buy rating. In a note to clients, Hudson Securities writes, "We are initiating coverage of the common shares of China XD Plastics Company Ltd. (CXDC) with a Buy recommendation and a 12 to 18 month target price of $8. Our $8 target price is based on 15x our 2011 EPS estimate." Later in the research report, Hudson Securities goes on to say, "Without clear visibility in 2011 vehicle sales, we assume a conservative top line assumption of 19.4% YoY growth and a 24% gross margin for 2011. If the top line growth can increase to 40% due to better passenger car production and sales while gross margin remains constant, we would expect to see diluted GAAP EPS increase to $0.77 from $0.54. If, through better operational or cost efficiencies, the company can expand gross margins by 100-basis points, we can expect diluted GAAP EPS to increase to $0.60 from $0.54." Shares of China XD Plastics Co Ltd are gaining 2 cents to $6.50 in early trading.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorNewsPrice TargetInitiationMarketsAnalyst RatingsHudson Securities
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!