Oppenheimer Reports Strong 4Q Results On SORL Auto Parts
According to Oppenheimer, SORL Auto Parts (NASDAQ: SORL) saw strong 4Q results.
Oppenheimer reported that recently, SORL reported better than expected 4Q10 results and provided 1Q11 guidance that was also above consensus estimates. “While we expect robust sales growth to continue, rising labor/material costs may moderate SORL's earnings leverage in 2011. We're adjusting our model to reflect revised margin assumptions, but there is no change to our 2011 sales/EPS estimates. While we continue to like the company's underlying market fundamentals, the stock is likely to remain range-bound near term given heightened investor concerns over corporate governance issues of Chinese RTO companies and SORL's relatively small auditor. We're lowering our price target from $15 to $12 on lower market multiples.”
SORL Auto Parts closed yesterday at $5.64.
