Piper Jaffray Reduces PT To $6.50 On SORL
Piper Jaffray has lowered its price target on SORL Auto Parts (NASDAQ: SORL) from $8 to $6.50 in light of the company's earnings, which were recently reported.
In the report, Piper Jaffray writes, “We are cutting our 2011 estimates for SORL following the company's earnings call earlier this week. We agree with management's stance that SORL's aftermarket and international exposure are an effective buffer against weakness in the domestic OEM market. However, given that 60% of revenue is tied to new car and truck sales, and given that these markets are facing significant headwinds (due to inventory, inflation, oil, etc), we believe a more conservative earnings outlook is prudent.”
Piper Jaffray maintains its Neutral rating on the stock.
SORL closed at $5.60 yesterday.
