Jefferies Reiterates Hold Rating on TriMas Corp. (TRS)
Jefferies & Company is out with a research report this morning, where it reiterates its Hold rating on TriMas Corp. (NYSE: TRS); it has a $20.00 price target on the stock, up from $14.00.
The Jefferies analysts said that they believe earnings are on track to rebound in 2010, but they will also taper off into 2011; cost reductions will be a main focus.
The analysts did note that TRS has some niche opportunities in the specialty dispensing, energy, and aerospace segments, which could help with its long-term story.
As for valuation, the analysts noted, “We believe TRS's fundamental metrics trail its peers. The stock is trading at more than 20% discounts. But these discounts are far less than the 50% discounts accorded the stock historically. Given our concerns over LT growth, we believe the current discount is appropriate. Our YE11 target is $20, suggesting limited upside.”
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